Nationwide Building Society today launches a new insurance policy designed to protect the income of people without comprehensive sick pay at work.
The Illness and Injury insurance cover comes as the impact of the loss of income has never been more apparent, with the pandemic highlighting the difficulties many have faced when they have contracted Covid-19. This is the case particularly for those who are self-employed or on zero hours contracts who have been most impacted as if they don’t work, they don’t get paid.
Nationwide’s research reveals a third of people (37%) say having income protection in place is more important than it was prior to the pandemic, increasing to 51 per cent when looking at those aged under 35. The biggest concern for people is how will they pay their mortgage or rent and provide for their family, should they be unable to work.
The insurance is available to UK adults aged between 18 and 55 who are employed or self-employed working a minimum of 16 hours per week. Members can apply for the insurance, which is underwritten by Legal & General, online in a few simple steps.
Members can choose to insure how much they would need to cover their bills up to 60 per cent of their gross income and up to a maximum of £2,000 per month (£24,000 per annum) if they are unable to work. In the event of a claim, the policy would pay out monthly after four-weeks for a maximum of 12 months.
For those who are self-employed in a job for less than 12 months, the total will be 35 per cent of gross earnings, up to £24,000 a year. The maximum monthly benefit if someone is unemployed or a houseperson and not in paid employment or working at the time of claiming is £1,000 a month (£12,000 a year).
Full details of the Illness and Injury insurance can be found here.
Darren Black, Head of General Insurance at Nationwide Building Society, said: “The pandemic has shone a light on the issues faced by many when they are unable to work due to illness. Many people have been kept up at night worrying about how they will keep a roof over their head and support their family. Our new Illness and Injury insurance will provide people with the peace of mind that should they be unable to work they will be able to maintain some of their income to pay their essential bills. We have worked hard to create an easy-to-understand product that gives people confidence that they will be protected should the worst happen.”