Have you ever asked yourself what is the most valuable thing you own? While you may instantly picture your house or your car, in reality, the most valuable thing all of us have is our ability to work and earn. Just think about it, if something were to happen to prevent you from receiving a steady income, you wouldn’t be able to afford to maintain or fuel your car and can even end up in debt or lose your house.
Although we may think it will never happen to us, sickness is a common part of life. And being absent from work due to sickness can cause serious financial problems, whether it’s only for a week, for a few months or longer. As the costs of living are constantly increasing and can leave many people desperately struggling to make ends meet. While the state may offer some benefits if you’re unable to work, often these aren’t enough to cover all your needs. Considering this, most people can benefit from being covered by sick pay insurance if an accident or illness strikes.
Sick pay insurance can help replace your income if sickness or injury prevents you from working. Most of these insurance policies provide you with a monthly benefit that consists of up to 80% of your total income until you’re able to get back on your feet. There are different types of sickness and accident policies which can provide you with benefits either for a limited or an indefinite time. What’s more, the policy may be priced according to your age and general health at the moment you’re signing up. But in general, an accident and sickness costs around 1-3% of your monthly income.
Some companies also offer accident only and sickness only covers, which are cheaper than the combination of the two. In any case, regardless of the type of cover, anyone aged 18 and up can apply for it. However, the maximum age at which a sickness and accident insurance can be taken out varies between insurance providers. What’s more, most insurance companies will stop providing you with benefits once you reach a certain age, which in most cases is 90 years.
When choosing the right sickness and accident cover for you, there are several factors to take into consideration – the waiting period, benefit period, ownership structures and scope of cover. Also, note that different types of injuries or illnesses may have different compensation amounts attached to them.
While signing up for an illness insurance in most cases is a smart thing to do, if you already have substantial savings, you can use them instead of insurance. However, make sure that your savings can cover a longer period of being unable to work.