Why part-time pay still needs protecting
People work part time for many reasons: childcare, caring for a relative, study, health or a second business. Part-time income often fills a specific hole in the household budget, such as nursery fees or the car payment. Losing it can unbalance the whole month.
Part-time roles also tend to come with less generous sick pay. Many people receive only statutory sick pay, which may not cover much of your normal week.
Part-time work is common among parents, carers and people approaching retirement. Each group has slightly different needs, so the right policy for a carer working two days a week may not suit a semi-retired consultant.
How insurers look at fewer hours
Some insurers apply their most generous definition of incapacity, known as own occupation, only to people who work above a minimum number of hours a week. Below that, they may assess whether you can do any suited work, or whether you can carry out everyday tasks.
These definitions decide whether a claim succeeds. A policy that looks cheap may use a stricter test for your hours, so compare the wording as closely as the price.
Some insurers offer a housepersons or homemaker definition for people with very low or no earnings. These policies usually pay a fixed, smaller benefit and look at whether you can do everyday tasks. They can still help with childcare costs if you were ill.
Earnings, benefit and minimums
Benefit is a percentage of your gross earnings, so a part-time salary gives a smaller maximum. Some insurers also set a minimum benefit or minimum premium, which can make cover on very low earnings poor value.
If you have more than one part-time job, ask whether the insurer will count both incomes. Most will, with evidence.
If you are self-employed part time, insurers will usually base benefit on taxable profits shown on your tax returns. Keep records clear and up to date.
When your hours change
If you increase your hours, you may be able to raise your benefit, though the insurer may ask new medical questions. If you drop your hours, your benefit at claim may be limited to your new earnings, so you could be paying for more cover than you would receive.
Some policies let you pause or reduce cover during a career break. Read the conditions before relying on it.
If you plan to go back to full-time work soon, ask whether the insurer will let you increase cover at that point without full medical questions.
- Tell the insurer if your hours or job change, if the policy asks
- Review the benefit amount after any pay change
- Check the definition of incapacity at your new hours
How Hi Tomorrow helps part-time workers
We ask about your hours, your sick pay and your plans. Then we look across our panel for insurers whose definitions suit part-time work, and we explain plainly what test you would face at claim.
If income protection is poor value on your earnings, we will say so and talk through critical illness cover as an alternative.