The IP Files, episode #3
2 Dec 2020
So far in 2020, Income Protection comprises 33% of all LifeSearch claims. This series shines a light on the stories behind the claims, and what might have happened without IP …
For more info and FAQs, see our dedicated Income Protection page.
“He was only 45. He got it really, really bad”
A seasoned marketing leader in professional football contracted Covid-19 overseas. As a relatively young man, with no underlying health issues, the severity and aggressiveness of his symptoms surprised everyone.
A bad situation got worse and he fell into a coma. He ultimately spent five months out the game.
The customer’s employment contract was a case of no work = no pay. He didn't have benefits, but thankfully he did have IP.
Covid-19 and Income Protection
Insurers will pay out when people are off work because of Covid-19. But because the virus typically lasts for days / weeks (not months/ years), customers generally have recovered before their deferment period.
A deferment period is chosen by the customer. It usually corresponds with how quickly they’d need Income Protection payments to kick in. And that’s typically determined by one’s employer sick pay. For example, if you work for the NHS or a local authority, you’ll typically have six months full sick pay - so there’s no need for additional IP payments until that ends.
With no employer sick pay to fall back on, this customer arranged Income Protection with the minimum possible deferment period of one week.
He didn’t have to experience a break in income. All in, he claimed for five months and we’re delighted to say he’s back at work and fully recovered.
The alternative ending
Without Income Protection this story wouldn’t have had a great ending.
Statutory Sick Pay is under £96 per week. That’s less than £400 per month – for what wound up five months – to cover running costs, bills and overheads. Assuming that’s not enough, there’s very few options open beyond getting into debt, ruining savings, or seriously altering lifestyle.
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