Unum, the income protection specialist, has increased its maximum benefit limits, offering annual cover of up to £250,000 a year on its Personal Income Replacement Plan and Primary Income Replacement Plan.
The insurer has also upped the maximum cover available under its Executive Income Replacement Plan, which now offers annual cover of up to £300,000 a year. In addition, Unum will provide cover for National Insurance contributions and life and pension contributions payable by an employer where cover is written as part of an employee’s sick pay arrangement.
Linton Penman at Unum says, “Long-term illness is a real threat. Everybody is talking about unemployment at the moment, but the reality is that there are still more people currently claiming State incapacity benefits, with 75% of these having been off work for more than two years.”
Many people looking to the State for assistance during periods of long-term ill-health may have to claim the new Employment and Support Allowance – the majority of whom can expect to receive just £89.80 per week. Over the course of a year, this represents just 20% of the average gross UK salary of around £25,000. As State benefits are not earnings-related, the shortfall compared to an individual’s regular income can be significant.
Income protection: News update: 02/05/2009