Unum has launched a new individual income protection plan for teachers. The Teachers Income Replacement Plan has been designed to dovetail a teacher's existing sick pay entitlement.
Under current sick pay arrangements a state school teacher will receive full pay for an initial period, followed by a period of half pay. However, traditional income protection plans have had a fixed deferred period making it difficult to provide a replacement income that dovetails properly with a teacher’s sick pay arrangements.
This new product will automatically pay an initial benefit when a teacher starts receiving sick pay and will immediately pay an increased benefit when their entitlement to enhanced sick pay comes to an end. It also gives teachers the flexibility to review their cover levels at key stages in their career without the need for further underwriting and medical information.
Unum’s Linton Penman says, “The new plan is designed to give teachers the reassurance they need from income protection, whatever stage they are at in their career. However, it should appeal in particular to teachers who have worked in the state sector for less than four years and therefore have more complicated sick pay arrangements. An extensive range of guaranteed increase options also helps to ensure that there is an appropriate level of cover throughout the policy term.”
The product was developed in conjunction with Wesleyan for Teachers and builds on Unum’s existing Personal Income Replacement Plan. Unum is offering the new product exclusively through intermediaries that specialise in advising the teaching community.