Our lives can sometimes change in an instant as a result of an accident or illness and one of the ways that this can affect us is being unable to work, which can soon put our personal finances under strain.
There are experts such as Claims Direct to help you claim compensation if you suffer as a result of an accident that wasn’t your fault and it also helps to have an understanding of what pay you are entitled to should you become sick and unable to work.
Statutory sick pay
Your personal circumstances will dictate to a certain extent what course of action you take to get the money you need in order to keep your personal finances on track.
There may be a claim for compensation if you sustain an injury that prevents you from working, or you may develop an illness that also means you are not able to work for a period of time or even indefinitely.
The first safety net that is available when you are employed but unable to work, is Statutory Sick Pay.
If your average earnings in the two-month period before you stopped working exceeded £112 per week, you should be entitled to receive SSP of £88.45 per week, based on 2015-2016 rates.
You may well find that your employer operates a more generous sick pay scheme or they may even decide to assess your case on an individual basis depending on the circumstances that led to your inability to work and your employment record with them.
ESA
Not everyone is able to claim SSP and that is why there is the Employment and Support Allowance (ESA).
If you are self-employed, you are obviously not going to be able to approach your employer for SSP and the same scenario applies if you are unemployed. ESA may be available to you if you don’t qualify for SSP and have been ill for longer than 28 weeks.
The level of financial support you will be entitled to will be dependent on your age and National Insurance contribution record and will also take into account any benefits you are currently claiming.
Insurance
It may be that you took out insurance to protect vital regular payments such as your mortgage or to ensure that you still receive a percentage of your regular monthly income each month.
Check to see whether you signed up for mortgage payment protection insurance, critical illness insurance or any other form of protection insurance which should come into force if you are unable to work for a period of time.
A lot of people sign up to these policies and can often forget they have them amidst the general panic about your change in circumstances, so remember to check what you have taken out, or consider some protection insurance if you want to try and plan for an unforeseen event in the future.
If you suffer an illness or accident, speak to your employer about your options immediately and also contact your insurance company to make a claim, as there is usually a qualifying period to wait before you receive any money.
Mason Doherty is an insurance adjustor. He enjoys sharing his insights online. His articles are available on insurance and finance websites.
