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Personal Sick Pay – reintroducing day 1 and 1-week waiting periods

On 29 October 2020 we reintroduced Personal Sick Pay with day 1 and week 1 waiting periods.

Personal Sick Pay is our specialist Income Protection aimed at clients in riskier occupations, such as manual workers, who traditionally can be more expensive to insure.

There are some important things you should be aware of, and which clients we can offer day 1 and 1-week waiting periods to at this stage.

Frequently asked questions

Our Coronavirus FAQ document features additional information and guidance.

We update this regularly with the most common and new questions from advisers and partners.

Day 1 and 1-week cover – not available for self-employed clients

If your client is self-employed, they won’t currently be able to have a policy with a day 1 or 1-week waiting period. We can still offer them cover on a 4-week waiting period. This may change in the future and means your client could contact us to amend their waiting period.

If you submit an application for a self-employed client on Fastway, our online quote and apply system, the application will be referred to one of our underwriters to manually review. The day 1 or 1-week waiting period will be declined, but we can offer cover on a 4-week waiting period as an alternative.

Please note: Day 1 and 1-week waiting periods will still show on your chosen sourcing portal. Illustrations will contain wording highlighting self-employed provisions, but will only be restricted as you complete the application on Fastway.

 

Limited cover for certain industries

For certain industries where your client’s income has been affected by COVID-19, it's possible that we may restrict day 1 and 1-week waiting periods for other people depending on their personal circumstances. For example, if your client’s job or earnings have been affected by COVID-19.

This may change in the future and means your client could contact us to amend their waiting period.

We’ll continue to ask if your client’s job and earnings have been affected by COVID-19. They’ll have to tell us if they’ve been furloughed, made redundant, claimed on COVID-19 related Government Income Support or their business is on hold. If any of these options apply to them, we’ll be asking the applicant if they work in one of the listed industries (entertainment, sports, leisure and retail, events and hospitality, restaurant or bar trade, travel or tourism, aviation, security and hairdressing or beauty). If they do, we won’t offer day 1 or 1-week periods. But we’ll consider them for a 4-week waiting period depending on their individual circumstances.

Provisions for new Personal Sick Pay policyholders

We’ve made a number of COVID-19 related provisions for all new Personal Sick Pay policyholders, from 29 October 2020.

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Temporary COVID-19 exclusion for symptoms lasting under 4 weeks

In response to the current situation, we won’t currently pay a claim due to symptoms or complications of COVID-19, other coronaviruses, respiratory tract infection, cold or flu if your client is unable to work for less than 4 weeks.

If your client’s symptoms are more serious and last beyond 4 weeks, we’ll consider their claim and backdate any claim payments to start from their first day off work or a week after (depending on their waiting period).

Every year we’ll review whether this exclusion is still necessary and if we can improve or remove this exclusion from your client’s policy, we’ll let them know.

Calendar next to coin stacks

Own occupation whilst on a career break or unemployed

As a valuable and unique feature in the market, we wanted to keep this option in place. However, our own occupation definition whilst on a career break or while unemployed will now be available for the first 30 days rather than 12 months.

This means your client will get our own occupation definition of sickness for any claim they make as long as they’ve not been working for 30 days or less (for example on a career break or unemployed).

If your client claims after 31 days or more of being out of work, we’ll pay a claim if they’re unable to prepare a meal or do basic housework. The maximum amount we can pay will be limited to £1,500 a month.

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Changes to underwriting questions and outcomes on Fastway

To accommodate the reintroduction of day 1 and 1-week cover, we’re making changes to the outcomes for some questions we ask about employment status and the financial impacts of COVID-19.

These changes allow our underwriters to consider applications for day 1 and week 1. The changes cover the impact of the pandemic on the client’s occupation, their earnings, and the type of industry they work in.

This will help us better understand the overall risk profile of the client and offer them suitable terms. If the outcome is likely to be a decline for day 1 or week 1 cover, you’ll be notified whilst completing your client’s application on Fastway.

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Let’s talk

For questions and queries about our Personal Sick Pay waiting periods, please speak to your account manager.