Sickness Cover: What is it and How do it get it?
Article published on 14th May 2013
Sickness Cover is available through a few different insurance policies. This article explains what Sickness Cover is and how you can protect yourself financially should you fall ill.
Statutory Sick Pay will pay you £85.85 per week for a maximum of 28 weeks should you fall ill and be unable to return to work; based upon the tax year 2012/2013. In order to be eligible for Statutory Sick Pay you must:
- Be in employment
- Be ill for at least 4 consecutive days (including non-worked days)
- Earn at least £107 before tax per week
- Inform your employer of your sickness within 7 days (or sooner dependent upon your contract)
You are not eligible for Statutory Sick Pay after the maximum 28 weeks payment period, or if you are receiving statutory maternity pay. Also, you will not be eligible if you have had 4 or more days of sickness for the same/alike illness, that has occurred repeatedly no more than 8 weeks apart, over a 3 year period.
If you are concerned about how you would cope if you were to suffer from a life-changing illness, such as Cancer, then you are more than likely looking for Critical Illness insurance. Critical Illness insurance will provide you with a one-off lump sum payment upon the diagnosis of a critical illness; please see here for further details.
Sickness Cover is designed to protect a portion of your monthly income should you fall ill and be unable to work. Upon a successful claim your insurance policy will pay you a monthly benefit to help towards your regular bills. Sickness Cover is provided through Income Protection or Accident, Sickness and Unemployment Cover.
All types of Sickness Cover come with an initial deferment period, in which you will need to wait before you are paid the benefit. It is common to have deferment periods of 4, 8, 13, 26 or 52 weeks. It is possible to have a deferment period of 1 day, but you will need to contact us directly to see if you are eligible.
Income Protection Insurance
Income Protection Insurance provides you with a tax-free monthly benefit of approximately 50-65% of your gross income, until your chosen age of retirement. Income Protection is a long-term insurance policy and is ideal if you are concerned about how you would cope if you were unable to work due to a disability.
You can index link Income Protection Insurance so that the monthly benefit that you are insured for increases in line with yearly RPI changes to your salary. A benefit of Income Protection insurance is that if/when you are able to return to work, the insurance will continue to run and you can reclaim for illness in the future.
If you would like to know more about Income Protection Insurance cover please visit our detailed page here. Alternatively please feel free to contact one of our industry trained advisors on freephone 0808 17 82 777
Accident, Sickness and Unemployment
Accident, Sickness and Unemployment is a short-term insurance policy that is generally much more affordable than Income Protection insurance. You can choose to have Accident and Sickness cover, Unemployment cover, or all three together as Accident Sickness and Unemployment cover.
You can typically protect between 50-65% of your gross income and will usually pay you a monthly benefit for 12 months. Different Insurance Providers offer policies that will cover the full 50-65% of your gross income, your mortgage repayments only, or just your regular monthly bills.
It is important to fully understand the terms of your policy to make sure that you are covered for the correct amount of insurance. Should your outgoings and/or income change you will need to inform the Insurance Provider as you may become under or over insured with your new situation.
How Can I Make A Claim
Insurance Providers will need at least one of the following documents to approve your claim. You may be required to produce additional documentation dependent upon the length of your claim:
- A doctors Fit to Work note
- Your redundancy confirmation letter
If you would like to know more about Accident, Sickness, Unemployment cover please visit our detailed page here. Alternatively please feel free to contact one of our industry trained advisors on freephone 0808 17 82 777
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