Accident and Sickness Cover

Mike and Sally Tillingbourne, aged 69 and 6o respectively. Mike earns £6,000 p.a. and is about to retire. At his stage of life he aims to ensure that both he and Denise have sufficient income for them to live in retirement without financial hardship.About fifty million working weeks are lost in British firms each year because of accidents and sickness. Many of these accidents and illnesses are minor, causing only a short absence from work, but a substantial number are serious enough to involve considerable loss of working time - and hence earnings - just at a time when large extra expenses are being incurred.

If you are an employee, your firm will probably continue to pay your salary for a short period after an accident or a serious illness keeps you away from work. Your salary may then gradually be reduced until it stops altogether after a certain number of months' absence. You are especially vulnerable if you are a self-employed business or professional person, as your income then ceases almost as soon as you are compelled to stay away from your work. As explained in Section 5, the sta9, provides sufficient money for your basic needs if illness or accident causes you to give up your work. At present the National Insurance sickness benefit during the first six months of sickness is related to earnings, but afterwards a flat-rate benefit is payable. For example, an employed married man with no children earning

1,500 a ye3,900 entitled to sickness benefit of £48.90 a w£68.90r the first six months of sickness reducing to £r I .90 a week afterwards and continuing so long as he is sick, while a married man with two children earning £6,000 rec£6,000£43.50 a w£46.90r six months reducing thereafter to £46.5o a w£66.9oNote that in both these examples the earnings-related supplement starts only after two weeks of sickness and then continues for up to z6 weeks.) Since these reduced sums are designed to enable you to to live at subsistence level, you still need additional insurance so that together with the state benefits you will have sufficient to preserve your standard of living during a long illness and be able to meet the additional commitments to ''yor wife and family. You still have to continue your mortgage payments, rates, rents and normal daily living expenses for yourself and your family. Accident and sickness policies are designed to provide sufficient money to make up your loss of income.

Finally, although our National Health Service has a Worldwide reputation for its quality, you may still prefer private medical treatment at home or in hospital, with a period of convalescence on holiday, or in a special home. Special policies are available to pay for the considerable expense of private medical treatment.

If you wish to insure against possible medical expenses abroad but do not want cover at home over and above that provided by the National Health Service, see Section 33.


Accident and Sickness Cover

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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Mike and Sally Tillingbourne, aged 69 and 6o respectively. Mike earns £6,000 p.a. and is about to retire. At his stage of life he aims to ensure that both he and Denise have sufficient income for them to live in retirement without financial hardship.About fifty million working weeks are lost in British firms each year because of accidents and sickness. Many of these accidents and illnesses are minor, causing only a short absence from work, but a substantial number are serious enough to involve considerable loss of working time - and hence earnings - just at a time when large extra expenses are... see: Your choice