Workers not insured for absence
January 17, 2007 by admin
Filed under News, News-Insurance
A large number of Britons are losing big sums of money due to taking time off work for illness and injury.
Research from Standard Life shows that the average worker has lost £5,320 through being forced to take time off work.
In total, 34 per cent of Britons have missed more than a week of work as a result of injury or illness, with 58 per cent of those missing more than a month and 17 per cent more than a year.
Despite the large number of people taking long periods of time off work, research shows that only eight per cent of these people had insurance to cover the loss.
“Income protection is a key part of personal financial planning often overlooked by consumers,” said Mick James of Standard Life.
“The state will currently pay a maximum of £78.50 through incapacity benefit for every week someone is off on long-term sick leave, although other benefits may also be available like housing benefit or a reduction in council tax.
“People should understand the risks they face if they don’t have a way of replacing lost income during a period of enforced absence from work,” he added.
Standard Life’s research found that just one in 12 people had insurance, while the majority (23 per cent) said they had coped with the financial loss in the past by borrowing from friends and family.
