Private (independent) Sick Pay Policy

Own_Worst_Enermy

Hi,

In my job in public sector there is no access to sick pay until you have passed the first 12 months of service.

Does anyone know how these work? is it worth doing or do you need to pay in a lot each month. I’ve tried looking on the provider website to see if you need to be in the best of health but couldn’t quite see this.

Many thanks.

Phoenix72

Are you sure there absolutely no paid sick leave in the first year? I know that entitlment to full pay grows as you accrue service but still thought there was some in year 1? If not you may still be entitled to SSP.

Not sure on these policies but like any insurance I can't see them covering absence caused by an existing condition.

DullGreyGuy

Own_Worst_Enermy said:

Hi,

In my job in public sector there is no access to sick pay until you have passed the first 12 months of service.

Does anyone know how these work? is it worth doing or do you need to pay in a lot each month. I’ve tried looking on the provider website to see if you need to be in the best of health but couldn’t quite see this.

Many thanks.

Income Protection comes in two flavours but are sold under the same name unfortunately...

AS(U) - also known as PPI - is an annual policy that typically pays out 1-2 years tops. They are relatively cheap, no cover for pre-existing issues but the premiums are reviewed annually and during Covid many found their premiums increasing 4x or more or simply weren't offered a renewal.

PHI - is the full fat version and is a form of long term insurance. The traditional policy will payout to your stated retirement age (eg 65) no matter how many years that is, there is a lighter version that pay for X years up to your retirement age. The key difference though is the premiums can be fixed or simply indexed all the way to you being 65 and insurer cannot cancel it other than for non-payment/fraud. Pre-existing conditions can be considered and may be covered for a higher premium. 

In both products you set a deferment period before claims payments start, clearly the longer before you can claim the cheaper. 

The average duration of a claim on PHI is just over 6 years so there is a clear question mark about what you do if you go for PPI and it stops paying out after the 2 years on how you fund the other 4+ that you'd have been paid had you gone for the stronger product.

LinLui

Most policies will not cover pre-existing conditions, and there is no cover for the initial period. Setting aside SSP, which is a legal right based on qualifying, it is incredibly rare that there is absolutely no OSP for a year in the public sector. Are you sure?

Undervalued

Own_Worst_Enermy said:

Hi,

In my job in public sector there is no access to sick pay until you have passed the first 12 months of service.

Does anyone know how these work? is it worth doing or do you need to pay in a lot each month. I’ve tried looking on the provider website to see if you need to be in the best of health but couldn’t quite see this.

Many thanks.

Assuming you are in reasonable health and are willing to accept a significant deferment period then the cost may be quite modest. If you want the insurance to cover you from day one of any sick leave it will be expensive.

Self employed people are in a similar position (actually worse as they don't get SSP). Most sensibly opt to cover themselves for short term sickness (but putting some money to one side) and insuring against being unable to work long term. 

DullGreyGuy

LinLui said:

Most policies will not cover pre-existing conditions

PPI won't

PHI will cover many but obvs depends what they are... my PHI covers all my pre-existing chronic conditions but the only thing it won't cover is problem with my ears because I had an acute inner ear infection 18 months before applying. Had I waited and applied later then the ear infection would have dropped out of the revenant period and therefore everything would have been covered. 

(Removed by Forum Team)

LinLui

(Removed by Forum Team)

Some policies do not cover pre-existing conditions. Some will cover some pre-existing conditions, with attached conditions and exclusions / limits. Some pre-existing conditons will almost never attract cover - heart disease/problems and MS for example. The OP was also clear that they were looking for insurance for 12 months whilst their company sick pay kicked in (which raises the questions "how much sick leave do they think they will need in the first year?") and they appeared to indicate that they "weren't in the best of health". So they are looking for something that provides full benefits from day 1 for the first 12 months. Having just done a quick survey of the major providers, most restrict any pre-existing conditions cover to only some conditions (and often only one or two conditions, not multiple conditions), they provide very limited cover of those, and often nothing or almost nothing in the first year of the policy. As a result, the OP would very likely be unable to find  cover for pre-existing conditions if that is what they are referring to. If you are aware of a provider who provides full cover for all pre-existing conditions (not just the ones that you have) without exclusions or conditions or limitations, please do share that information, as it would be very helpful to lots of people. 

Undervalued

(Removed by Forum Team) Some policies do not cover pre-existing conditions. Some will cover some pre-existing conditions, with attached conditions and exclusions / limits. Some pre-existing conditons will almost never attract cover - heart disease/problems and MS for example. The OP was also clear that they were looking for insurance for 12 months whilst their company sick pay kicked in (which raises the questions "how much sick leave do they think they will need in the first year?") and they appeared to indicate that they "weren't in the best of health". So they are looking for something that provides full benefits from day 1 for the first 12 months. Having just done a quick survey of the major providers, most restrict any pre-existing conditions cover to only some conditions (and often only one or two conditions, not multiple conditions), they provide very limited cover of those, and often nothing or almost nothing in the first year of the policy. As a result, the OP would very likely be unable to find  cover for pre-existing conditions if that is what they are referring to. If you are aware of a provider who provides full cover for all pre-existing conditions (not just the ones that you have) without exclusions or conditions or limitations, please do share that information, as it would be very helpful to lots of people. 

Which also raises another point. If an employee takes a large amount of sick leave during their first two years of employment, then there is a significant chance (with many employers) of their employment being terminated whilst the employer is almost entirely free to do so.

LinLui

Undervalued said:

LinLui said:

DullGreyGuy said:

LinLui said:

Most policies will not cover pre-existing conditions

PPI won't

PHI will cover many but obvs depends what they are... my PHI covers all my pre-existing chronic conditions but the only thing it won't cover is problem with my ears because I had an acute inner ear infection 18 months before applying. Had I waited and applied later then the ear infection would have dropped out of the revenant period and therefore everything would have been covered. 

Its not great to repeat false information

Then you shouldn't be repeating false information. Some policies do not cover pre-existing conditions. Some will cover some pre-existing conditions, with attached conditions and exclusions / limits. Some pre-existing conditons will almost never attract cover - heart disease/problems and MS for example. The OP was also clear that they were looking for insurance for 12 months whilst their company sick pay kicked in (which raises the questions "how much sick leave do they think they will need in the first year?") and they appeared to indicate that they "weren't in the best of health". So they are looking for something that provides full benefits from day 1 for the first 12 months. Having just done a quick survey of the major providers, most restrict any pre-existing conditions cover to only some conditions (and often only one or two conditions, not multiple conditions), they provide very limited cover of those, and often nothing or almost nothing in the first year of the policy. As a result, the OP would very likely be unable to find  cover for pre-existing conditions if that is what they are referring to. If you are aware of a provider who provides full cover for all pre-existing conditions (not just the ones that you have) without exclusions or conditions or limitations, please do share that information, as it would be very helpful to lots of people. 

Which also raises another point. If an employee takes a large amount of sick leave during their first two years of employment, then there is a significant chance (with many employers) of their employment being terminated whilst the employer is almost entirely free to do so.

Yes, I did wonder about that too. I can't speak for the entire public sector ... and I am still wondering what part of the public sector doesn't have OSP for the first 12 months because that is very unusual (and may inform the risk of being terminated for sickness)... but all the public sector employers around here do have more generous terms than that but have become quite ruthless about sickness absence. 

TELLIT01

Own_Worst_Enermy said:

Hi,

In my job in public sector there is no access to sick pay until you have passed the first 12 months of service.

Does anyone know how these work? is it worth doing or do you need to pay in a lot each month. I’ve tried looking on the provider website to see if you need to be in the best of health but couldn’t quite see this.

Many thanks.

All employees, irrespective of how long they have been with an employer are entitled to Statutory Sick Pay assuming their earnings are high enough.  An employer, certainly one in the public sector, is unlikely to try to deny paying that.

Own_Worst_Enermy

I just thought it was SSP because we’re pretty smallfry at grade 2 but this definitely appears on the intranet and the job is more remote so you can work if not 100%.  We don’t qualify for flexitime either but there is a setup of having a paid hour off each month which I’m not sure what to make off. 

Thanks everyone for the information on the private sick pay/income protection - it just vibrantly popped up on my feed the other day but checking that particular company out it seems they’ve only be around a year if that.