If The Unthinkable Happens, Where Will You Turn?
Edinburgh, income cover for sickness, critical illness cover
A recent report by top market research group Mintel said 60% of people would not be able to support themselves financially if they were unable to work for over a year.
(Source: Mintel Income Protection Insurance Report, January 2009).
Have you thought about what you would do if you and your family found yourselves in this difficult situation? In the light of this report, we’ve asked ourselves the same question.
You could choose to take out income protection insurance which covers you in case of sickness. We asked a leading UK insurance company to provide us with some real life case histories of people who've done just that. (Note: the case studies refer to the services of a personal rehabilitation case manager to those making an Income Cover for Sickness claim. Not all companies provide this).
Ruth’s Story
28-year-old Ruth suffered a car accident and experienced difficulties walking. She was also diagnosed with post-traumatic stress disorder after the accident. She was waiting for NHS treatment, but her rehabilitation case manager arranged for her to have immediate private physiotherapy and hydrotherapy instead. She was also referred to a cognitive behavioural therapist, which enabled her to develop coping strategies to address her post-traumatic stress disorder.
Andrew’s Story
Andrew, a 54-year-old self-employed accountant, was unable to work due to anxiety attacks and depression. His case manager liaised with his GP to arrange a course of cognitive behavioural therapy and helped him to develop job-seeking skills. As a result, he successfully secured an alternative accountancy role without his symptoms increasing.
Tristian’s Story
Tristian, 55, had a diabetes-related lower left leg amputation. He was unable to return to his original role as an IT engineer, but his rehabilitation case manager liaised with his GP and employer to implement a programme to help him return to work gradually. Tristian started with the lighter, desk-based aspects of his job on reduced hours, gradually building up to full hours and duties. And he was back to work in just 3 months.
But Surely Such Cover’s Expensive?
We asked the obvious question and were given another interesting case study….
Jo Lister’s Story
“We added Income Cover for Sickness to our plan for just £8.32 a month.”
Jo Lister already had a protection plan that covered her for death or critical illness, which she bought with her husband Mick in 1999. But after falling pregnant with her first child in 2003 she decided to take another look at her financial situation.
“Mick and I suddenly started to wonder what would happen if he suffered an accident or an illness that wasn’t critical and he couldn’t work. As he was the main breadwinner, how would we survive as a family?”
The Listers decided to take out income cover on Mick covering the maximum option of 50% of his gross salary. They started a new plan for Life or Critical Illness Cover and Income Cover for Sickness.
These plans can be flexible, which means you can add new covers whenever you need to. You can also tailor each cover to suit your budget. When you buy Income Cover for Sickness, you can often choose how long you’d like your claim to be paid if you become ill. Note: the longer the payments are made, the more expensive your plan will be. You might have the option of up to 1 or 2 years, or up to the end of your cover.
Jo and Mick chose the 1-year option to fit their budget. And the cost of the new income cover, along with Payment Cover for Sickness - which is automatically added to all Income Cover for Sickness plans - was just £8.32 a month. The total cost of Jo and Mick’s plan was £44.77.
Says Jo “The extra £8.32 seemed a small price to pay for the added peace of mind having income cover gave us. And this includes back-to-work support for Mick if he needs it, which means we have financial security and emotional support all in one plan.”
Jo and Mick’s plan included Life Cover or Critical Illness Cover (their insurer will pay their claim for whichever happens first), Income Cover for Sickness, and Payment Cover for Sickness, which means they’ll pay their plan payments for them if they can’t work because they're ill.
Working With Your Employer
Case managers can also work with your employer to agree temporary reduced working hours or help with any necessary changes to your role, responsibilities or environment.
Finding you an Alternative Role
If you can’t do your original job anymore as a result of your illness or accident, your case manager can discuss finding an alternative role with your employer. And if there’s no longer a role that’s right for you, some insurance companies have specialist consultants who can advise and guide you in the search for a new job. They’ll match your existing skills with new roles, help you to write your CV or job applications and even practise interviews with you.
More Information
If you'd like to receive more information on Income Cover for Sickness, please click here*
Post new comment