We regularly ask our clients two questions related to ill health and the majority are normally unsure on the answers!
How long are you paid by your employer if you are off work sick?
Do you know how much statutory sick pay is per week?
Most come back with answers like:
- ‘Not been off sick for ages so no idea’
- ‘My boss is lovely so they’d make sure I’m okay money wise’
- ‘I’m never ill’
- ‘That won’t happen to me!’
But what if it does?
Most employers are reducing employee benefit packages to try and reduce the cost to the business. More and more employees now only receive statutory sick pay if they are off work sick.
In 2024/25 statutory sick pay is £116.75 per week for up to 28 weeks. This is the equivalent to £505.91 per month.
Could you afford to pay all of your bills and maintain your lifestyle on this amount if you were off work long term sick?
If not, you need to consider an income protection policy.
This type of policy will provide you with a tax-free monthly income if you are off work due to sickness or injury, from when your employer stops paying you until such point that you are either fit to return to work or until the end of the policy, which is typically state retirement age.
In simple terms it provides sick pay to you when work stops paying to help secure your financial position long term.
The cover is normally based on your own occupation i.e. you are unfit to do your specific job, and covers you for any medical condition e.g. stress to back ache to something more serious like cancer, as long as you are signed off medically by your GP/Hospital.
The policy ultimately provides you with some form of financial security if ‘this did happen to you!’.
Do I need it?
We believe this type of policy is vital to most clients and a key element of protecting their finances. If you would like to see how this cover works for you please ask for a free initial consultation so we can show you the specific benefits for your circumstances.
Make sure you have peace of mind if the worst does actually happen to you!
The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.