Income Protection

[ARF8885]

Income Protection Advice.

Current Employer offers 2 months sick pay at full pay, 2 months sick pay at half pay, then Income Protection at 50% for upto 5 years (claimable after 26 weeks).

Trying to finalise a package with new employer, previously as part of an original offer, 6 months sick pay at full pay was offered, along with Life Assurance (3 x basic).

I’ve managed to negotiate the following to be included in a revised offer, 2 months sick pay at full pay, then Income Protection at 80% basic pay for upto 12 months (claimable after 8 weeks), Critical Illness (3 x basic) and Life Assurance (3 x basic).

I’ve read that the income protection policy terms can vary, some 12 months, some more. Is 80% basic salary for 12 months good? Average? Poor?

Is it right that they’ve adjusted the standard sick pay from 6 months to 2 months to offset the cost/benefit of the income protection policy they’ll be taking out?

Any pointers, welcomed!

Edited by ARF8885 on Saturday 4th February 19:00

[parabolica]

My employers have 6 months full sick pay followed by 5 years income protection at 60% (subject to the insurer’s acceptance, which is becoming harder and harder to get) and from what I gather this is typical for the industry (O&G). It’s sounds as if your new employer doesn’t offer IP as standard so they’ve added it at your request? On that basis seems fair they adjust one benefit to facilitate giving you another that is non standard. Is there a particular reason that you wanted IP included?

[Panamax]

ARF8885 said:

Any pointers, welcomed!

That's a good package of benefits they're offering. I suggest just saying "yes". If you go on pressing for more I suspect you'll just annoy them and end up starting your new position on the wrong foot.

[ARF8885]

parabolica said:

My employers have 6 months full sick pay followed by 5 years income protection at 60% (subject to the insurer’s acceptance, which is becoming harder and harder to get) and from what I gather this is typical for the industry (O&G). It’s sounds as if your new employer doesn’t offer IP as standard so they’ve added it at your request? On that basis seems fair they adjust one benefit to facilitate giving you another that is non standard. Is there a particular reason that you wanted IP included?

Thanks Parabolica, that’s useful. Previous employer global outfit, 40k+ employees Vs new employer start-up business . So difficult to compare, but new employer as you say doesn’t offer as standard and has tried to match by current benefits.

In terms of reasons for IP, main earner in the household, mortgage, dependants etc. and not able to cover outgoings on OH’s salary. Just that peace of mind, should I not be able to work for a period of time, we won’t struggle or need to live with the money worries.

[ARF8885]

Panamax said:

That's a good package of benefits they're offering. I suggest just saying "yes". If you go on pressing for more I suspect you'll just annoy them and end up starting your new position on the wrong foot.

Thanks Panamax. Agreed it is, naively I hadn’t appreciated something would need to give to offset the introduction of the IP. But comparing against current employers benefit, they both has their pros and cons.