When illness or injury prevents you from working, it’s important to know what financial support you may be eligible for from the government or your employer in the UK. Unfortunately, many people discover too late that the support available is not enough to cover their basic living expenses.
Basic Sickness Benefit – Statutory Sick Pay
For those in permanent employment in the UK, the basic sickness benefit, known as Statutory Sick Pay (SSP), is currently less than £116.75 per week. This amount may be insufficient to cover regular expenses and financial commitments, such as rent, bills, or daily living costs. Additionally, many employers do not provide any additional financial support beyond the statutory minimum, and the scope of group insurance is often very limited.
The Self-Employed: A More Challenging Situation
For the self-employed, the situation is even more challenging. Unlike those in permanent employment, self-employed individuals are not entitled to Statutory Sick Pay. Instead, they can only apply for Employment and Support Allowance (ESA). The current rate for this benefit for people over the age of 25, during the first three months of being unable to work, is only about £90.50 per week. This amount is often far from enough to maintain a standard of living or meet ongoing expenses.
What Are Your Rights and Entitlements?
Many people working in the UK are unsure of what financial support they are entitled to in case of illness or injury. Unfortunately, a large number find out the hard way, only when something happens, and are left struggling to manage with insufficient funds. To avoid this, it’s crucial to understand your rights and what support is available to you before you find yourself in a difficult situation.
If you are not entirely sure what your employer is obligated to provide, we offer a free employment contract check to help you understand your entitlements. We can also assist in preparing proper private insurance to ensure you are adequately covered in case of an unexpected illness or accident.
Income Protection Insurance: Protect Your Income
One of the most critical types of insurance to consider if you are working in the UK is an Income Protection policy, also known as Permanent Health Insurance. This insurance provides a regular income if you are unable to work due to illness or injury. It is particularly essential for those whose employers do not offer additional sickness benefits and for the self-employed.
An Income Protection policy can help cover a significant portion of your lost income, allowing you to meet your financial obligations and maintain your standard of living while you recover. This type of insurance offers peace of mind by ensuring that you are not left without financial support in difficult times.
Why Should You Consider Income Protection Insurance?
- Security: It provides financial security by replacing a portion of your lost income if you are unable to work.
- Flexibility: You can choose the deferred period (the waiting time before the policy starts paying out), which allows you to tailor the coverage to your needs.
- Peace of Mind: Knowing that you have a plan in place can alleviate the stress of financial uncertainty during times of illness or injury.
Don’t Leave It to Chance
It’s always better to be prepared for the unexpected. Don’t wait until an illness or accident leaves you without adequate financial support. Consider securing an Income Protection policy to protect your income and financial stability.
Better be safe than sorry… Insure your health and finances today.
If you need guidance on your entitlements or want help choosing the right insurance policy, please contact us.
Our team is ready to assist you with free advice and no-obligation quotes to help you find the best solution for your needs.
