Sick Pay Insurance – Does this type of cover exist?

I’m looking for some kind of sick pay cover but can’t find very much information about it, please help.

Question asked by Stephen Newham
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Income Required
per
month
Date of Birth
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 02084327333
Our in-house Experts are here to provide FREE impartial advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

Answered by Tom Conner

It is sometimes the case that Income Protection Insurance is referred to as Sick Pay Insurance.

This type of cover is designed to payout a monthly benefit to cover lost earnings when someone has to take time off work due to illness or injury.

Information for individuals

Many workers in the UK are not entitled to receive sick pay from their employers over and above Statutory Sick Pay (SSP). This means that employers need only pay £92.05 per week for up to 28 weeks.

As a result, income protection is a popular type of cover for people who would not receive full sick pay from their employer. The self-employed are also particularly keen on income protection.

Income protection is even popular with those who do receive a period of sick pay because many companies only pay a very short period of sick pay, which ranges from just a few weeks with some firms up to 12 months with others.

Income protection can payout all the way up until retirement if the policyholder is unable to return to work so it provides vital cover for more serious illnesses or injuries and the plan can be aligned so that it kicks-in when sick pay ends.

Information for businesses

With the emergence of shorter payout period policies some companies have decided to insure a proportion of their potential sick pay liability with Group Income Protection (GIP), thus providing more certainty around costing.

Classed as an employee benefit, GIP is a policy taken out by businesses and pays out a monthly benefit to the business if an employee has to take time off work due to illness or injury. Those moneys are then paid to the employee. The lowest cost option is for the policy to payout for a maximum period of two years.

There are even plans in the market that could pay an additional amount to the company for ‘associated business costs’, such as for recruiting and training a replacement.

For more information please visit our ‘Guide to Sick Pay Insurance‘.

income protection
 
sick pay
 
self employed
 
employed
 
company director
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Income Protection Insurance Questions

 
If i take out income protection now and need to make a claim will i still be eligible for any benefits...
 
As I am a director of a limited company a large percentage of my earnings come in the form of dividend...
 
I can see that some plans seem to base the amount of income protection cover on earnings, often as a...
 
What is the minimum deferred period I can have with sickness insurance? I really need it to pay our from...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Matthew Draper
11/07/2018

Excellent service at convenient times of the day specified by me. All product options were clearly outlined and I am very pleased.

Paul Devine
10/07/2018

First class service. Helped me through the process from start to finish. Egle and Francis were very professional and talked me though all my options. Once the policies were set up, the after care after was also first class. Highly recommend. 5 stars all day long.

Josip Marjanovich
03/07/2018

Victoria was very helpful about selection of suitable insurance. She always answered all questions in a timely manner.

We are rated 4.9/5 based on 1512 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.93 / 5 Average
652 Reviews
Verified Buyer
Overall Rating
The whole process was a pleasure. Drewberry we're easy to deal with, polite, knowledgeable and helpful
Verified Buyer
Overall Rating
Very good, clear service would recommend to friends and family
Anon
Overall Rating
Sam Carr provided an efficient and professional service.
Verified Buyer
Overall Rating
Sam Carr provided a professional but enthusiastic service and helped make the whole process very straight forward. Goodness knows I have been through enough application forms recently. My insurance product was never going to be easy to find and I had been rejected on a number of other occasions through others ironically due to well managed common health conditions. I identified Drewberry in a last and disappointing trawl on th web to find someone that actually wanted to take on a difficult case like me. Some brokers wouldn't even consider me. When we applied for my first choice product Sam wasn't at all deterred by the long wait for my GP report or the final rejection that came back from the insurer, sadly I have become used to it. Within a day he had lined up the second choice and to my surprise he had hit the nail on the head and introduced me to the correct insurer and terms for my needs whilst nogotiating an excellent premium. I am extremely satisfied with what Sam has achieved for me and I would have no hesitation in recommending either him or Drewberry to friends, family and and business contacts. In the future, Drewberry will be my first point of contact. Many thanks!
Kym
Overall Rating
Tailored to my need and the staff gave very good service