Many Brits Not Covered For Long Term Sick Leave

Most UK workers are not adequately protected if they are forced into long term sick leave, although they wrongly think they are eligible for sufficient money either from their employer or the state.

According to research by Unum, the UK’s biggest provider of income protection policies, 90% of employees do not have adequate income protection insurance should they fall seriously ill.

It was also found that most people wrongly think that their employer would provide sufficient cover, whereas in fact they are only legally obliged to supply four weeks worth of salary should an employee require long term sick leave.

Others believe that the state will provide for them too, however the reality is that the government will only pay a total of £5000 a year to those on long term sick leave.

With unemployment at record levels and large cutbacks in government welfare spending, Unum is launching a nationwide campaign to make consumers aware of the financial difficulties that could ensue should an employee go onto long term sick leave.

Income protection policies can cover up to 80% of an employees’ salary with benefits starting after a predetermined period. Payments can be made up to retirement age or for a set number of years if need be.

With many people recognising the importance of life insurance, these findings show that adults should also take the threat of long term illness seriously too.

In this video, we hear from Kate, aged 35, who unexpectedly had to take long term sick leave last year and wasn’t protected, while Jack McGarry, CEO of Income Protection provider Unum, and Nick Cosh, broker at PMI Health Group, look at the implications and discuss what you can do now to protect financially against sudden illness.