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LV= Personal Sick Pay, tailored income protection designed for riskier occupations

Personal Sick Pay

Personal Sick Pay market comparison

We've put together this table to help you understand the different products available.

This is not an exhaustive list of features, please see our and individual provider’s terms and conditions for full details. All correct as at March 2017.

 

Comparison notes

  • 1) Some occupations have a set retirement age where cover under the own occupation disability definition ends and claims will be assessed using Cirencester’s total permanent disability definition.
  • 2) If the client is incapacitated by the actions of a third party, it is a condition of the terms of the policy that the client must repay Holloway an amount equal to the benefit paid to the client during their claim, from any payment made to them by that third party whether obtained by court action or received by way of settlement from the third party’s insurers.
  • 3) Premiums and benefit are suspended. You may suspend your cover and your premium payments for a minimum period of 3 months up to a maximum of 24 months. Such a suspension of premium Payments is referred to in this policy as a “career break”.
  • 4) Fixed Benefit option to all - Fix up to 75% of the initial benefit by providing financial evidence upfront. Financial assessment would need to be followed for remaining benefit (minimum of 25%). Exeter £1000 guarantee. £1,000 benefit guarantee is available on the 2 year plan it is an optional extra.
  • 5) For Full LV= Personal Sick Pay the benefit guarantee is limited to two years. If after two years the client is still claiming, a 60% replacement ratio will be applied which is based on their taxable earnings before they became too unwell to work.
  • 6) British Friendly will not deduct state benefits in the first year of claim, but will after this period. Cirencester won’t deduct state benefits during the first four months of claim, but will after this period. British will not deduct for the first 12 months of any claim.
  • 7) Cirencester won’t pay the claim if it’s a result of the misuse of solvents or substances used for other than their stated purposes; the use of illegal substances or drugs not taken under the advice or supervision of the client’s doctor; the misuse of alcohol; pregnancy/childbirth; sterilisation unless on the grounds of medical necessity; any operation or treatment that is not medically necessary, including cosmetic surgery; criminal conduct or participation in a criminal act.
  • 8) Holloway won’t pay the claim if it’s a result of HIV or Aids when contracted in the course of the client’s normal job; war, civil commotion and riot; self-inflicted injury; criminal acts; drug or alcohol misuse or failure to follow advice.
  • 9) LV= offer a budget version with a maximum claim period of two years. Once the claim’s been paid the policy will continue and the client will be able to claim again in the future (although they must have been working for at least six months between claims).
  • 10) British Friendly has two budget versions; Protect Short Term which is linked to earnings and Breathing Space, which isn’t linked to earnings. Both have claim periods for either one, two or five years and the client will be able to claim again in the future (immediately for a new illness or injury; or after six months is claiming for the same condition).
  • 11) Holloway’s budget version has a benefit period of one & two years. Once the claim’s been paid the policy will continue and the client will be able to claim again in the future (although they must have been working for at least 12 months between claims).
  • 12) Rehabilitation benefit - Entitlement to rehabilitation benefit will only arise if immediately following a period of incapacity, during which benefit has been paid: Your Doctor confirms that you are fit enough to work but not in your pre-incapacity occupation or occupations; and this results in a reduction of your pre-incapacity income.
  • 13) LV= do not offer houseperson cover from onset, although clients will still be able to claim if they’re not working when they fell ill (the cover will be capped at £1,500 a month). The Exeter offer houseperson cover from onset, although this is capped at £867 a month.
  • 14) The waiting period for LV= waiver of premium (if selected) match the waiting period selected for Personal Sick Pay / Budget Personal Sick Pay. The minimum waiting period for waiver is 1 month (4 weeks), max is 6 months (26 weeks).
  • 15) Cirencester automatically include waiver of premium and the client must continue paying their premiums in claim, although they will get these back as a refund in their benefit entitlement.
  • 16) The Exeter include waiver of premium with Pure Protection dependent on the waiting period. For day 1, 1 week, 4 week and 8 week options, the client will have to pay their premiums for a period of 3 months following the day they become ill or injured. The Exeter will then waive the premiums until the claim ends, or the policy reaches its finishing date. For 13 week, 26 week and 52 week options, clients only have to pay their premiums during the waiting period. With Bills and Things, the client will need to pay their premiums for the first 4 weeks.
  • 17) Holloway automatically include waiver of premium in both their full and budget products, although clients must continue paying their premiums for the first 52 weeks of claim.
  • 18) Clients need to be in the UK or an eligible country, or return within 26 weeks of illness.
  • 19) Cirencester and Holloway cover certain occupations to age 70.
  • 20) 60% of cover up to £100k and then 40% thereafter.
  • 21) If a client isn’t in active employment, they can continue their policy but won’t be able to claim.
  • 22) British Friendly does not financially underwrite its Breathing Space policy; the maximum monthly income available is £13,000 a year which is not linked to earnings.
  • 23) Ability to Guarantee Benefit level (1 year benefit term only) - No financial underwriting at claim, subject to proof of income at application of Holloway’s ‘guaranteed benefit level’ protects income against salary cuts or a reduction in self-employed business income. Unlike the LV= £1,000 benefit guarantee, clients will be required to provide evidence of their income at application stage.
  • 24) Reviewable premiums are reviewable after 3 years.
  • 25) This is a part payment of sickness benefit from us to assist you and will be paid for a maximum of 52 weeks.
  • 26) If you are a houseperson, you will be eligible for 50% of your selected benefit, subject to a minimum of £500 and a maximum of £1,500 per month.
  • 27) Client must prove they were working before claim and can only have £125-250 a week.
  • This is not an exhaustive list of features, please see our and individual provider’s terms and conditions for full details. All correct as at March 2017.

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Flexible Protection Plan

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Income Protection

Protect your clients' income if they can't work due to long term accident or sickness.

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