In the light of these figures it’s important to ask yourself if you really know whether this would impact you financially? For example, do you know how much your workplace pay you while you were off? And do you really know what your income would be on a monthly basis?
New research by Royal London, which questioned 1,030 people, has highlighted the need many of us have for some form of income protection. It revealed that 52% of people would worry about our income if we were off work due to illness for over a month.
The survey also found that two-thirds found their employer’s sick policies difficult to understand, with one-in-six not actually knowing what their employer’s policy was at all.
So, what would your income be if you were off sick?
Statutory sick pay entitles employees to £94.25 a week for up to 28 weeks and just under half of those surveyed said they did not think this would be enough to live on if they were off sick for longer than a year. It begs the question; would you be able to continue living your life as normal if this was your income?
Despite this some employers do offer contractual sick pay which is more generous than Statutory Sick Pay, however, a quarter of those surveyed mistakenly believed that sick pay policies were the same across all companies and industries. The average UK worker stands to lose almost £450 in pay if they were off sick for a week without contractual sick pay.
This is why it’s important to have income protection in place. Falling ill unexpectedly could happen to anyone, and the financial impact it could have on you and your loved ones could be a serious problem. Seeking expert advice is important to ensure you’re suitably protected against illness.
If you would like to find out more about income protection or speak to an Oviso advisor, then please call us on 0333 321 0060.
Payment Protection Insurance is optional. There are other providers of Payment Protection Insurance and other products designed to protect you against loss of income. Statutory sick pay correct as of 24/01/2019.