How long do you receive sick pay for?
Finding out the details of your sick pay benefit can be essential. For example, if your employer offers statutory sick pay, this will last for 28 weeks - meaning a 6 month deferred period may suffice.
However, if your employer has a company sick pay scheme, the length of time you receive sick pay for may vary depending on what your employer offers.
Finding out exactly what you’re entitled to can allow you to set your deferred period accordingly.
Do you have savings?
If you don’t receive sick pay or are self-employed, it’s likely you’ll need to rely on your own savings while you’re unable to work.
Are you part of the 13% of the UK population that currently have no savings?[1] If so, it’s likely you’ll want to set a shorter deferred period to avoid any financial struggles.
For those that do have savings, you’ll want to work out how much you have and how long it’s likely to last you.
Alternatively, if your savings were intended for something else (perhaps a house deposit, holiday or new car) you may also want to choose a shorter deferred period to avoid having to dip into these funds.