You might think, “my sick pay from work would cover it” – but did you know that the Statutory Sick Pay (SSP) allowance is just £88.45 a week? Most people would struggle to pay their bills on this little income.
Recent studies have confirmed that people are 3 times more likely to go off on long-term sick during their working life than they are to die. Despite this, only 1 in 10 private sector workers have arranged any sort of Income Protection plan. According to the ABI (Association of British Insurers) this amounts to a mere 9.4% of the total workforce – yet 1 million of us find ourselves unable to work each year due to serious injury or life changing illness.
Just because we’re ill, the bills don’t stop coming.
It’s true that employers will continue your full pay for several weeks or months but after this time, you’ll start receiving SSP. A few months at full pay may seem like all you need – but you might be surprised at how long you could be signed off for even for a simple accident.
For instance, if you break your leg, and you need mobility in your job, you’re not going to be able to work at all for at least 2 months – much longer if you have complications.
Another common pitfall is expecting a Critical Illness policy to cover sick leave. It won’t. Critical Illness pays out a lump sum when diagnosed with one of a distinct list of diseases or conditions – which won’t cover most common complaints.
Income Protection policies ensure you remain able to get by even if you’re unable to work for months. If you’re worried about being able to pay the bills should you become ill, give me a call and I’ll talk you through your options.