Research from insurance company LV= has indicated that an alarming 34% of UK residents – that’s round 11 million people – are not eligible for company sick pay from their place of work.
While many of these individuals would be eligible for statutory sick pay – currently £88.45 per week – this represents a major pay cut for many workers and could be a source of anxiety at what may already be a distressing time. For example, surviving on statutory sick pay alone may leave you unable to make essential mortgage payments.
Self employed and temporary workers need to make provisions
Workers on zero hours contracts, those who are on temporary contracts, freelance workers and self-employed people could all be at risk of losing out financially in the event of being unable to work through long term illness. While those who are employed may benefit from a company sickness package, many small and medium enterprises (SMEs) only offer statutory sick pay, which could also make planning ahead a sensible option for those employed by this type of organization.
Income protection insurance offers a buffer
For many employees it is sensible to take out income protection insurance, particularly if they have a mortgage to pay off or a family to support. Myles Rix, of LV=, commented that: "A contingency plan such as income protection offers workers peace of mind so they can focus on recovering without worrying about whether they can pay their bills."
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