Recent research suggests that a large proportion of those in the UK feel that they would be unable to survive longer than three months should one of the main 'breadwinners' in the household suffer from a long term illness.
The protection provided by statutory sick pay is insufficient for people to maintain their lifestyle, given the fact that it is far below the national average wage.
For most, the best case scenario is to utilise savings to fund this income 'gap' in the hope that the illness is only a short term issue. For those without an emergency cash fund the ramifications may be far more severe and potentially life changing.
Protection is available to provide an income in the event of long term illness, with features that can be selected to complement any benefits provided by an employer.
The question, therefore, is can you afford not to be protected?
Cirencester pointed out that although employment contracts will vary, workers who are off sick for four or more days in a row are entitled to a minimum of £88.45 through statutory sick pay - paid for 28 weeks by the employer. Thereafter, the claimant has to make an application for employment and support allowance, with an assessment rate of £57.90 per week for under 25s and £73.10 for over 25s is paid for up to 13 weeks and then either £102.15 or £109.30 per week depending on circumstances thereafter. The current UK average earnings is £488 per week so the provider argued that even a temporary reliance on statutory sick pay or employment and support allowance would result in a significant financial shortfall for many workers.