If you're employed

Mother and Daughter

We don't exclude any particular occupations, but you must have a permanent employment contract with no set end date for us to consider you as ‘employed’.

However, if your employment is temporary or casual, or your employment contract is with an employment agency rather than the company you’re working for, you'll not be eligible for Lifestyle Cover.

Please note: We don't cover ‘zero hour’ contracts, for example if your employer doesn't have to provide you with any minimum working hours, and you don't have to accept any of the hours offered.

Below we show you how Lifestyle Cover Insurance will effect you if you're employed.

Employed elegibility
Accident or sickness Unemployment
Eligibility

You can take out Lifestyle Cover to protect your income if you can't work because of an accident or sickness, as long as you meet our eligibility criteria.

Please read the eligibility criteria before you buy.

You don't need to tell us your medical history when you apply, but we'll check this when you make a claim.

We don’t specifically exclude chronic conditions, such as:

  • Asthma
  • Cancer
  • Diabetes
  • HIV/AIDS

However, you'll not be able to claim in the first 12 months of cover for any illness or disease, which you suffered from in the 12 months before this cover started.

You can take out Lifestyle Cover to protect your income if your employment ends due to circumstances outside of your control, as long as you meet our eligibility criteria.

Please read the eligibility criteria before you buy.

This policy will protect your income if your employer makes you redundant, but not if you choose voluntary redundancy or if your unemployment is due to disciplinary action by your employer.

You'll not be able to claim for unemployment benefit if you've had prior notice that you could be made redundant or lose your job. By this we mean your employer formally telling you verbally (face -to-face, over the phone) or in writing about a reorganisation, restructure or programme of redundancy which affects your role. This applies either before you take out Lifestyle Cover, or within the first 60 days of cover, when you'll not be able to claim for unemployment benefit.

Claims

When you make a claim for accident or sickness, you'll need to send us:

  1. confirmation from your doctor that you're off work; and
  2. confirmation from your employer that you're absent from work; and
  3. proof of your gross monthly income. For this we will need your last three payslips and bank statements showing that these payments have been made to you.

Note: While we'll accept certification from your doctor for most illnesses, for us to consider your claim we do need a suitably qualified consultant to confirm that you’re unable to work in the case of a back-related condition. For us to consider your claim for depression the symptoms must be certified as severe by a suitably qualified consultant or doctor.

When you make a claim for unemployment, you'll need to send us:

  1. confirmation from your employer of the date you were first told you could be made unemployed and the date your employment ended;
  2. confirmation from the Jobcentre (this means you must satisfy the terms of your Claimants Commitment to be able to claim on this policy – your Jobcentre will usually issue you with a benefit award letter which contains this information); and
  3. proof of your gross monthly income. For this we'll need your last three payslips and bank statements showing these payments have been made to you.
Qualifying period There's no initial exclusion period under our Accident and Sickness insurance, unless you have a pre-existing medical condition.

There's an initial exclusion period under our unemployment insurance. This means that you won't be able to claim if you're made unemployed, or told by your employer that you may lose your job, in the first 60 days from the date your cover starts.

However, we can provide unemployment cover as soon as you add it to your policy if it's replacing another policy, either from us or another insurer (and your other policy has been active for at least 12 months immediately before taking out this unemployment cover), which offers unemployment protection. Terms and conditions apply and you can find them in the policy document.

Limitations and exclusions apply. For more details of what is and isn’t covered, please read our   PDF file: Lifestyle Cover Insurance Key Features PDF size: 133KB   PDF file: Lifestyle Cover Insurance Product Information PDF size: 131KB   or for full details see our   PDF file: Lifestyle Cover Insurance Policy Booklet PDF size: 132KB   

How do I know what benefit amount is right for me?

The most we'll cover is 65% of your gross monthly income.

This is your total monthly earnings before tax and National Insurance contributions. For many people this is not far off their usual take-home pay.

While we can offer to cover up to 65% of your gross monthly income, choosing maximum cover may not suit you. Take a moment to think about the following:

  • Monthly costs - add up your monthly costs, for example mortgage or rent payments, food, phone bill, utilities (gas, electricity, water), childcare, gym membership or credit card bills.
  • Employment benefits - look into what benefits you may be entitled to. Will your employer continue to pay your normal wages if you're ill and can't work?
  • Is there a prearranged redundancy package in case you are made unemployed?
  • Savings and income - review your savings and other similar schemes. Are your savings set aside for a rainy day or do you already have plans for them, for example, a wedding, holidays, a new car? Do you have income from other sources?
  • Other insurance - take into account any other payment protection policies you may already have in place.
  • Government benefits - are you entitled to any government benefits such as Support for Mortgage Interest or Income Support?

How long do I have to wait before you pay my benefits?

We don’t pay benefits straight away when you make a claim - we call this the deferred period.

You can choose a 30, 60, or 90-day deferred period for accident and sickness or unemployment options.

You can also have a longer deferred period of 180 days for accident and sickness cover. We’ll work out your claim at a daily rate and pay your benefit to you monthly in arrears (this means every month for the month just gone).

More information about when your payments start.

Will this policy affect any of my state benefits?

Monthly benefits paid under Lifestyle Cover may affect your entitlement to benefits from the Department for Work and Pensions (DWP). If you’re not sure whether you'll be able to claim government benefits, contact the Department for Work and Pensions at www.dwp.gov.uk.

By clicking the link above, you are leaving our website. We are not responsible for the accuracy of the information or the content of the linked site.

Examples

1. Mr Brown knows that he’ll receive six months' full pay from his employer if he becomes too ill to work, but is worried his redundancy package won't amount to much if he's made redundant. He’s got a small amount of savings put aside, but would prefer not to rely on this as his wife is due to have a baby soon.

Mr Brown chooses:

  • a 180 day deferred period for his accident and sickness cover,
  • a 30 day deferred period for unemployment cover; and
  • a Standard payment option on the policy.

This means if he's unwell and can't work,  his employer will pay him for the first six months and then his accident and sickness benefit payments will start with his first benefit payment on day 211.
If he's made redundant, he’ll rely on his redundancy package for the first month and then his unemployment benefit payments will kick in with his first benefit payment on day 61.

2. Miss Jones has recently started a new job and is aware she won't receive any sick pay from her employer, apart from the Statutory Sick Pay. She doesn’t have any savings, but plans to start saving a little each month.
Miss Jones chooses:

  • a 30 day deferred period for her accident and sickness cover,
  • a 30 day deferred period for unemployment cover; and
  • a Back To Day One payment option on the policy.

This means if she's unwell and can't work, she'll receive her accident and sickness benefit 31 days after the start of her claim. Her payments will be back dated to the first day of her claim.

If she's made redundant, she needs her unemployment benefit to start as soon as possible. Her unemployment benefit will start to build up from the first day of her claim and she’ll receive her first benefit payment 31 days after the start of her claim.

Miss Jones can review her policy cover at any time. This means she can ask us to change her deferred periods when these are no longer in line with her circumstances, when her employer starts to pay sick pay after 12 months' service.