Percentage of salary | The percentage of an employee’s salary that’s paid in benefit, typically 33.3%-75%. | |
---|---|---|
Definition of salary | The salary definition which the benefit is calculated from. Typically basic annual salary or P60 earnings. | |
Benefit term/payment term | Traditional policies typically provide cover until a member’s retirement date, however short ‘term policies’ of only 2 or 5 year benefit payment terms are available. | |
Deferred period | Period of sustained sickness absence required before claim payment commences. Typically 26 weeks. | |
Escalation rate | Annual rate by which benefit escalates in order to cope with inflation. | |
Deduction | Benefit payments can be chosen to have state benefit deductions removed from them. | |
Definition of disability | e.g. ‘Own occuption’ - member unable to perform own occupation, ‘Any Suited Occuption’ - member unable to perform any suited occupation. |