For many working adults aged 25–50 — especially first‑time buyers, home movers, busy professionals and the self‑employed — employer benefits can feel like a financial safety net. Sick pay, Death in Service, workplace perks… it’s easy to assume they’ll be there when you need them.
But in reality, relying on employer benefits alone can leave big gaps in your long‑term financial security, especially when you have a mortgage that could last 25–40 years.
This is where ME Financial comes in: helping you understand the risks, take control, and make sure your income and home are properly protected.
Job Changes Are More Frequent Than Ever
One of the biggest reasons employer benefits can’t be relied on long‑term is simple:
people move jobs more often than they used to.
According to the UK Office for National Statistics (ONS), the median job tenure for people aged 25–34 is around 2.8 years, and for 35–49-year-olds it’s typically between 4 and 7 years depending on industry. In short:
Most people don’t stay with the same employer anywhere near as long as their mortgage lasts.
Every time you change job, you risk:
- losing your existing sick pay entitlement
- not being eligible for sick pay straight away in the new job
- receiving different (often lower) benefits
- losing Death in Service cover entirely
- having no protection if you become self-employed
And if you’re self-employed, you already have zero employer benefits, meaning you rely entirely on what you put in place.
Sick Pay: Not as Strong as People Expect
Statutory Sick Pay (SSP)
If you’re employed, the minimum legal benefit is Statutory Sick Pay.
As of the latest UK rate:
- £116.75 per week
- Paid for up to 28 weeks only
That’s £466 per month — which won’t touch most people’s mortgage, bills, food and other living costs.
Employer Sick Pay
Some employers offer more generous sick pay, but even then it usually looks like:
- 3–6 months full pay, then
- Reduced pay, then
- Nothing
Employer sick pay is not guaranteed, not legally required beyond SSP, and can be changed or removed at any time.
And if you change jobs?
Your new employer may offer far less — or nothing at all.
Death in Service: Valuable, But Not a Mortgage Plan
Death in Service can be really helpful, but it’s often misunderstood.
Most employers offer between 2x and 4x annual salary if an employee dies while employed by them.
But:
- If you leave the job, the cover stops instantly.
- It’s not linked to your mortgage amount.
- Mortgages often last 25–40 years — employer loyalty doesn’t.
Relying on your employer for something as long-term as your mortgage can be risky, especially when your employer can change your role, package or benefits at any time.
Why Sorting Insurance Early Matters
A really important point for consumers to understand:
Insurance only gets more expensive as you get older.
And your health almost never improves over time.
Waiting to take out Income Protection or Life Insurance can mean:
- higher premiums
- exclusions applied
- declined applications
- postponed cover
- having to accept terms that might not suit your needs
Getting the right cover in place from the word GO puts you in control — not your employer, not your job situation, and not your future health.
Income Protection: A Safety Net YOU Control
Income Protection (IP) is often the most robust form of sick pay because:
- It pays a percentage of your income (often 50–60%)
- It continues until you recover or reach the end of the policy term
- It covers illness and injury
- It stays with you when you change jobs, go self-employed or move home
Setting the Deferment Period to Match Employer Sick Pay
One of the strongest features is the deferment period — the amount of time after illness or injury before the policy starts paying.
You can align this perfectly with your employer’s sick pay.
Examples:
- Employer pays full pay for 3 months → choose a 3-month deferment
- Self-employed with no sick pay → choose a 1-week or 4-week deferment
This helps keep costs down AND gives you a seamless transition from employer pay to insurance pay.
Putting Protection in Your Own Hands
With mortgages lasting up to 40 years, relying on employer benefits alone leaves too many variables:
- Will you stay with the same employer for decades?
- Will your employer still offer the same benefits in 5, 10 or 20 years?
- Will your health still allow you to get affordable cover?
- Would SSP cover anything meaningful if you were off sick?
By putting your own protection in place you keep control, no matter where life takes you.
Talk to ME About Your Protection Requirements
If you’d like to review your existing setup, understand your risks, or explore Income Protection, Life Insurance or Critical Illness options, Talk to ME.
We can help you make informed decisions and build a protection plan that moves with you — not your employer.
Is employer sick pay guaranteed?
No. Beyond Statutory Sick Pay, employers do not have to offer enhanced sick pay and can change or remove their scheme at any time.
Does Death in Service cover my mortgage?
Not specifically. It’s usually a multiple of your salary and ends when you leave the job. It isn’t designed to match or repay a mortgage balance.
Are self-employed people covered by any sick pay?
No. Self-employed individuals are not entitled to Statutory Sick Pay, so personal protection becomes even more important.
Can income protection work with my employer’s sick pay?
Yes. You can set a deferment period to begin when your employer sick pay ends, helping reduce premiums while keeping full coverage.
Does income protection stay in place if I change jobs?
Yes. It’s your policy — not your employer’s — so it moves with you whenever you change roles or become self-employed.
This article is for information only and does not constitute personalised financial advice. Protection products depend on individual circumstances and eligibility. Consider speaking to a qualified adviser before making decisions.
