Recent research from the friendly society found nearly a third (30%) of people questioned were unaware what their employer would pay them if they had to take sick leave.
Many assumed if they had a serious illness or an accident and had to take a long period of leave, their employer would continue to pay them at their current rate.
Meanwhile, over three quarters (76%) did not know what level of state sickness pay they would be entitled to.
Currently, it stands at just £86.70 per week. The average UK household spends £484.00 per week on their outgoings – so this would barely be enough to cover most people’s rent or mortgage, the research said.
PG Mutual also highlighted while the number of employees taking long-term sick leave seems to be increasing, the provision of sick pay from employers is set to decrease as they review benefits packages due to economic pressures.
Mike Perry, chief executive of PG Mutual said: “We have seen an increase in the number of people taking out income protection over the past year, but there still seems to be a misunderstanding of what it is and its importance.
“The problem with having an accident or falling ill is that no one wants to think about it, but if it happens, it’s too late to get cover. There’s also a common misconception that if [people] have critical illness and life cover, [they will] be covered for this eventuality.”
