What the Government Provides - How much cover?

Insurance companies believe that you may not wish to return to , work if you are financially better off in sickness than in health. To prevent this occurring, companies usually limit your maximum cover such that the total income from all permanent sickness insurances will never exceed about three quarters of your normal earnings. This takes into account similar policies from other insurance companies, and includes benefits under the state National Insurance scheme (see Section 9). There is no point in taking out a new policy if you are already insured for this maximum, and thus unable to receive any further benefits, bui you should periodically increase the amount of your insurance as your standard of living increases.

Example 22. Married man with two children earns £1200 a month.

Basic income : £800 per month

Less flat-rate National Insurance benefit (plus family allowance) of t76 = ;C77 per month

A policy covering him for 77 a month would, together with his state benefit, provide him with three quarters of his salary during illness.


How much 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.

Salon Gold Insurance

Cheaper Insurance for Salons, Freelance Hair and Beauty, and Mobile Businesses - click here

read on: What the Government Provides - Group policies

Insurance companies believe that you may not wish to return to , work if you are financially better off in sickness than in health. To prevent this occurring, companies usually limit your maximum cover such that the total income from all permanent sickness insurances will never exceed about three quarters of your normal earnings. This takes into account similar policies from other insurance companies, and includes benefits under the state National Insurance scheme (see Section 9). There is no point in taking out a new policy if you are already insured for this maximum, and thus unable to receive any further... see: What the Government Provides - Group policies