Income protection policyholders and their insurers both benefit if recovery from illness or injury is assisted by physiotherapy or other appropriate intervention.

A blow to someone’s health can also hit their wealth if it means being off work for a long period, particularly for anybody whose sick pay is limited to the statutory arrangements. Anyone in that position would be wise to think about what would happen if accident or illness led to a prolonged absence from work and so a severe drop in income.

Last April, Statutory Sick Pay (SSP) rose to £81.60 a week, for those earning at least £5,304 a year. It is payable for just 28 weeks, although some people may then qualify for other forms of benefit. For many, SSP is just not enough to cover regular outgoings such as mortgage payments and utility bills, not to mention the needs of a growing family.

This is where income protection insurance comes in, either on an individual basis or perhaps under a group income protection scheme provided by an enlightened employer. Personal accident and sickness insurance and permanent health insurance are two variations on this theme.

Keeping premiums down

Premium levels, of course, always vary according to personal circumstances, but one way in which insurers have been working hard to keep them as low as possible for everyone is by managing claims in a sensitive but proactive way. This is good news for the honest majority but less good for anyone wanting to be off work as long as possible.

Central to such claims management is arranging for policyholders to receive the right help with recovery and rehabilitation following injury or illness. This can reduce the cost of claims for insurers but also helps the claimant because rebuilding mentally and/or physically is vital. A long absence from work can demoralise and slow down recovery.

Specialist input to rehabilitation

This aspect of claims and absence management is something that many insurers choose to outsource to specialist companies, the largest of which work nationwide through networks of doctors, nurses, physiotherapists, counsellors, CBT therapists and others helping to give every assistance to recovering victims of injury or illness.

Such insurer services and workplace health specialists work with the patient, the insurer and (where a company-funded group income protection scheme is involved) the employer, to ensure appropriate medical intervention and case monitoring. With this co-operative and positive approach, the interests of all stakeholders can be well served.

Timely return to suit all parties

A entirely premature return to work obviously benefits nobody, but sometimes there is scope for physiotherapists or ergonomics specialists to identify workplace modifications or other adjustments to working conditions that, at an advanced stage of the recovery and rehabilitation process, facilitate a timely return that suits all parties.

Co-operation between caring employers, their insurers and supportive professional providers can therefore enhance staff welfare and ensure effective management of long-term sickness absence. Case-tracking systems help streamline absence management processes and provide maximum support whilst moderating income protection insurance costs.

Whether we are talking about individual policies or group schemes, the same principles apply. Keeping down the cost of claims is key to keeping down the cost of premiums for all policyholders. Provided that rehabilitation support is appropriate and professional, with thorough assessment of progress, it helps to ensure that virtually everyone benefits.

NOTHING CONTAINED IN THE ARTICLE SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE. THE VALUE OF INVESTMENTS IS NOT GUARANTEED AND WILL FLUCTUATE. YOU MAY GET BACK LESS THAN YOU INVEST. PLEASE NOTE THAT THERE MAY BE VARIATIONS FOR THOSE LIVING IN SCOTLAND AND NORTHERN IRELAND.