Income Protection for Teachers

With over 600,000 full-time teachers in the UK, it is essential to ensure that they have suitable income protection in place.

Many teachers receive some form of sick pay from their employers, however this is often limited and the arrangements vary from employer to employer. This can make finding suitable income protection plans for teachers tricky.

Most schools/employers follow ‘Conditions of Service’ guidelines for sick pay, which are dependant on a teacher’s length of service and location.

England, Wales & Northern Ireland:

• Up to one year’s service: Full pay for the first 25 working days and half pay for 50 working days thereafter.
• Five plus years’ service: Full pay for the first six months and half pay for six months thereafter.

Scotland:

• Up to one year’s service: No pay for the first 18 weeks, then full pay for 1 month thereafter and half pay for 1 month after that.
• Five plus years’ service full pay for the first six months and half pay for six months thereafter.

To address this disparity, some insurers offer sick pay matching for teachers. This feature has two benefits:

• Matching Deferment Period: Teachers can choose a deferment period that aligns with their sick pay without yearly adjustments.
• Proportionate Benefit: Insurers pay a proportionate benefit to teachers during half-pay periods, ensuring financial security.

All insurers with this feature have a 52-week deferment period, but the start of benefit payments may vary.

If teachers change jobs or leave the profession, the sick pay matching may no longer apply, requiring a review to bring it in line with the new employer’s sick pay provisions.

In summary, income protection for teachers should consider their unique sick pay. Some insurers offer tailored options and others may require yearly deferment changes or may not provide proportionate benefits during half-pay periods. Hence it is important to ensure you have appropriate income protection plans to ensure adequate coverage.

Published December 2023

It is important to take professional advice before making any decision relating to your personal finances. Information on this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.