Income protection not just for World Cup stars
(Reuters)
Updated: 2006-06-27 09:11 Michael Owen will not have to
worry about losing his salary while he recovers from the injury that put him out
of the World Cup but few other workers are in such a fortunate position.
Relatively few have income protection insurance -- as opposed to chronic
illness cover -- despite the statistically high chance of being forced off work
for 6 months or more at some stage in their lives.
Kevin Carr, senior technical adviser at online insurance broker LifeSearch,
said statutory arrangements mean all an employer has to do is pay just over 70
pounds a week for the first six months an employee is too ill or injured to
work.
"People do not realise there is such a thing as long term income protection
insurance, which is paid free of tax," he said. "It is not nearly as well
promoted as life insurance or payment protection insurance."
Yet, according to industry statistics, an average man under 50 is twice as
likely to be off work for more than six months because of an accident or
sickness, than he is to die.
Although many employees do pay more than the minimum statutory sick pay, few
will continue beyond six months, Carr said.
Under most income protection policies it is up to the individual how soon
after becoming ill or injured they begin to receive benefit from the insurer.
Depending on the individual circumstances it can be as soon as day one or as
long as one or two years.
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