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Unum tailors plan for teachers

Unum has established an income protection plan for teachers in the public sector which takes into account local authority sick pay arrangements.

The teacher’s income replacement plan, developed by Unum with Wesleyan for Teachers, will provide a monthly benefit to teachers who cannot work due to illness or injury.

The amount and duration of local authority sick pay is determined by the teacher’s length of service so that traditional fixed deferred periods on other plans may not be suitable.

This plan allows initial benefits to be paid, less the sick pay the teacher receives, after 25, 50, 75 or 100 working days, depending on length of service. Full benefits will be payable after 25, 75, 100, 150 or 200 working days when sick pay is no longer paid.

A choice of guaranteed or reviewable premiums is available and an own occupation of incapacity is used.

The maximum cover is 50 per cent of pre-incapacity earnings up to £200,000 at the start of the plan, but may increase to £400,000 as the plan progresses. Pre-incapacity earnings may include benefits in kind such as a company car when used for private use and medical insurance.

Cover will increase automatically each year in line with inflation up to a maximum of 12 per cent or an option to increase cover by 5 per cent can be selected. The plan has a guaranteed insurability to option to increase cover on special occasions. This may include moving up the pay scale and moving to an area that receives a London salary weighting, as well as events such as marriage and having children. Another option, disability plus, provides 20 per cent more benefit after two years and is based on the inability to perform certain activities in work and daily life.

The flexibility of the deferred period and guaranteed insurability following a move up the pay scale are features which may lead teachers to choose this plan over those which cater for all occupations, some of which may exclude stress-related claims from teachers. It may be more expensive than a general plan, but some teachers may feel it is worth it.

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