34% of UK workers without sick pay cover
Research from insurance company LV= has indicated that an alarming 34% of UK residents – around 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 employed employees 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.”