Will a claim on a Short Term Income Protection policy affect my entitlement to State benefits?
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No - although you will be receiving an income through your Short Term Income Protection policy - insurance payouts do not qualify as income as far as the Benefits Agency or the Inland Revenue are concerned.
An added bonus - all insurance payments are tax-free.
State benefits have been decreasing significantly in recent years - just one of the many reasons why you should seriously consider insuring Only use the amounts shown as a guide. The rules for benefits mean that your individual circumstances may affect the amount you can get. This means you will not always be able to work out exactly how much you will get by using these amounts.
These are the weekly amounts:-
Under state pension age |
|
| Short-term lower rate | £57.65 |
| Short-term higher rate | £68.20 |
| Long-term basic rate | £76.45 |
Over state pension age |
|
| Short-term lower rate | £73.35 |
| Short-term higher rate | £76.45 |
Incapacity Age Addition |
|
| You may be able to get the Incapacity Age Addition if you get long-term Incapacity Benefit and were aged under 45 on the day you became unable to work. This includes days you got Statutory Sick Pay. | |
| Lower rate | £8.05 |
| Higher rate | £16.05 |
Could your and your family cope on these levels of income?
Consider the following: -
- Over the last 5 years accident or illness has caused 28 % of people to be unable to work for a month or more
- Accident or illness has caused 9 % of people to be off work for more than 3 months in the last 5 years.
- 33% of people between the ages of 25 and 34 have experienced unemployment for a month or more at some point.
- 500 people become unemployed each day in the UK - of those, 45% of women and 60% of men will be unemployed for 6 months or more.
- Around 80 houses are repossessed each day - the majority due to unemployment.