Have you ever stopped to consider what you would do if you weren’t able to work due to ill health? No-one expects to have to stop work, but life has a funny way of surprising you when you least expect it. Whether it’s a broken limb, arthritis or a life-threatening medical condition such as cancer or a heart attack, if you fall ill the bills still need to be paid.
You might only have to stop working temporarily and find yourself able to return after a few months. But when you’re not well, or are injured following an accident, racking up debts is the last thing you need. Sick pay insurance is the solution; a way of receiving an income to ease financial woes when you are off work from sickness, or injury. But what exactly is sick pay insurance and how does it work? Here’s a closer look at some of the key facts.
Sick Pay Insurance: The Basics
If you’re unable to work, you may receive full sick pay from your employer but very often this either doesn’t happen, or this doesn’t last for more than a few weeks. After this, you’ll be reduced to receiving nothing more than Statutory Sick Pay (SSP) – and this is even less than you might realise.
SSP amounts to only £89.35 per week, which works out at just £2.23 an hour if you were to work the average of 40 hours per week. So, quite clearly you’ll find there’s a huge shortfall in the bills you need to pay and the money coming in. Taking out sick pay insurance before you become ill means you won’t need to worry about losing your income.
Also known as short-term income protection insurance, this type of cover is an income replacement scheme and pays out when you have been unable to work for a continuous period of 30 days or longer.
No money is payable for this initial 30 day period. Once this has passed, with ESMI you’ll be entitled to receive up to 85% of your salary (or up to £2000 per month, whichever is the lesser). This amount is paid tax-free so most people will find themselves in at least the same financial position as if they’d been at work.
While you remain unable to work due to ill health, you will continue to receive sick pay insurance benefits. Sick pay insurance is payable for up to six months in any year of cover and the policy can be renewed annually, with no long-term fixed contracts.
Who Can It Help?
It’s always a good idea to keep some emergency cash in a bank account, just in case you’re suddenly not able to work. However, this money can very quickly evaporate, leaving you without any money left over and no income.
Sick pay insurance can offer an alternative means of income for the time you’re off work, and with ESMI can last for up to six months of the year (28 weeks).
You’ll need to check your contract with your employer to find out how long you get paid for if you’re unable to work. Many people will find that their terms and conditions explicitly state that their salary reduces after just a few weeks of absence.
One of the key benefits of sick pay insurance is that it is paid to the individual in lieu of salary, therefore taking away the financial pressure to return to work before your doctor says you should, and more importantly, before you feel like you are well enough to.
You may have been planning on surviving on Statutory Sick Pay in the event that you’re unable to work but at just £89.35 per week (2017/2018 figures) you’ll find that your income drops sharply. For most people, this isn’t enough to cover their outgoings and adds stress at a time which is already difficult.
Both employed and self-employed people can claim sick pay insurance, providing they’re registered with HMRC. Without any sick pay from employers, this type of cover can be particularly beneficial for those who are self employed.
The Eligibility Criteria
Everyone deserves to have the chance to protect themselves in the event of ill health and ESMI adopts an inclusive approach so that as many as people as possible are included. There’s just a few basic criteria that have to be fulfilled:
- Permanent UK resident
- Working 16 hours or more per week
- You are aged between 18 and 61 years old (with the policy being renewable to age 68).
That’s it! There’s no complicated small print and no medical questions or no medical examinations to suffer through to qualify for cover. No matter what your medical history is, we guarantee to accept you.
However, there’s a small number of high risk occupations which aren’t included; you can contact ESMI or view the policy documents to check if yours is covered.
What To Look For In Sickness Pay Insurance Cover?
Sick Pay Insurance pays out if you’re not able to work due to either accident or illness for a prolonged period of time. Cover will vary between providers but there’s a few key features which we believe make ESMI one of the best in the market:
- No complicated medical questions or medical examinations to complete to get cover
- Guaranteed acceptance even if you’ve been unwell in the past
- Up to 85% of your salary covered (one of the highest on the market)
- Cover for self-employed and employed workers
- There’s only a 30 day waiting period to receive your benefits, and we will pay you all the way back to the first day you were signed off work.
- Benefits are paid for up to six months in each and every year your policy is still live.
- Renewable annually up to age 68, with no long term fixed contracts or ties to the policy.
- Premiums from just £20.85 per month, making it an affordable option and less than the majority of mobile phone bills.
- You won’t have to pay an excess when you make a claim.
- You won’t have to pay more if you’re a smoker, or for other lifestyle factors
- A cooling off period of 30 days where you can cancel if you change your mind.
Taking out sickness pay insurance with ESMI is quick and simple and you’ll receive comprehensive cover at a very competitive price.
Don’t Risk Being Left In Debt
Hopefully you’ll never need to make a claim but if you’re unable to work due to ill health for a while, it’s comforting to know that you and your family are protected. Racking up debts when you’re injured or unwell can add a huge amount of pressure and could mean you’re forced to try and return to work before you should.
Sick pay insurance from ESMI provides you with complete peace of mind to recover at your own pace, protecting your income and relieving you of financial worries during a difficult time.
With guaranteed acceptance, no complicated medical questions, and a policy that renews every year, it’s never been easier to protect your finances.
We’re committed to making the process simple and easy with an online application that you can complete in minutes.
You have a 30 day money-back guarantee too.
With comprehensive cover that you can trust to look after you when you need it, apply today for sick pay insurance with ESMI.