If you are unable to work due to illness or injury, could you still afford to pay your bills?
Many larger employers may have a group sick pay scheme that pays up to 50% or 75% of salary for a period, e.g.:
Most smaller employers will not offer a sick pay insurance scheme with the exception of statutory sick pay (paid by the employer) currently at £96.35 per week (21/22) but end after 28 weeks (just over 6 months).
Can you afford to live on £96.35 per week or £zero after 28 weeks and then rely on means tested state benefits?
Permanent Health Insurance (PHI)
Planning for longer term illness or accident and being unable to work is a priority for us all. Many employers will not offer protection for this and you need to consider Permanent Health Insurance/Sick Pay Insurance to pay benefits up to normal retirement age.
Critical Illness Insurance
You should also consider Critical Illness (serious illness or injury) insurance that will pay tax free lump sums to you in the event of a serious illness e.g. heart attack, cancer, stroke, blindness, loss of limbs and many more serious conditions.
These funds may provide you with added protection for your family, pay off your mortgage, make home renovations or indeed give you time to plan and retrain for an alternative career.