Income protection for teachers

Income protection insurance is an essential part of working life, protecting individuals and families from the dangers of long-term illnesses and accidents affecting household income. There are a variety of different plans enabling individuals to tailor their cover to fit their own specific circumstances. For teachers however, the solution is not so simple.

Employer sick pay for teachers varies in the devolved areas, meaning that across the UK, there is no universal sick pay procedure for teachers. As well as this, teacher sick pay is based on days off, rather than weeks or months as is the case for other professions. This can mean policies do not always directly line up with the rates of sick pay received, and an individual can often be over or underinsured. It is not ideal as teachers are forced to bridge the gap between sick pay and their policy protection using their own savings.

For example, in England, Wales and Northern Ireland, a teacher who has been working for three years is entitled to full pay for 75 working days and half pay for 75 working days. You can see how an income protection policy with a deferred period of 6 months would not adequately protect their income (6 months equates to roughly 182 days!). In the case of a teacher whose service has lasted between 4 and 12 months, their full sick pay only lasts 25 days.

In addition, it is often more expensive to buy policies with shorter deferred periods, as teachers’ sick pay arrangements mean they ideally should have specific income protection policies. Protection from some providers include a 12-month waiting period, and then is tailored to top up income alongside sick pay received. When the sick pay stops, the policy commits to pay 100% of the individual’s monthly cover amount. In the case of the new teacher whose service was between 4 and 12 months, these providers will provide 50% of monthly benefits after 25 days. These policies provide guaranteed income, making life a little bit easier.

It may not always be the priority to protect from the worst-case scenario, but important planning must be done to protect from accidents and misfortune.

There are limited income protection providers that have bespoke deferred periods for teachers, paying out using similar structures to teachers’ sick pay arrangements. Here at Prosperis we can help finding tailored cover to suit your specific circumstances, ensuring you and your family are protected.

For more information regarding tailored income protection, contact Prosperis at 01423 223640 or email us below.