Employees do not understand the level of financial support they would be entitled to if they were unable to work due to sickness, new research has revealed.
The study from Canada Life found that many were unaware or confused about what employer and state benefits were available and for how long they would be paid out.
One in five (19%) did not know how long the employer would pay their salary and almost a third (30%) thought this would not last beyond three months.
It also found 12% thought that they would receive their full salary for the duration of their illness, while 10% had no idea how much they would receive.
Unfortunately for the protection industry, people would be more likely to rely upon savings (41%), or the state (21%) than income protection (12%).
However, a third (33%) did not know which state benefits might be available and 63% did not know how long these would last.
Companies must provide employees the equivalent or more than Statutory Sick Pay of just £79.15 a week, which can be paid for up to 28 weeks.
An employee qualifies for this providing their average weekly earnings are above £97, and it comes into effect after the employee has been sick for four consecutive days.
Paul Avis, sales and marketing director at Canada Life Group Insurance, was worried that the research revealed a significant dependence upon state benefits and savings, despite very few people having sufficient savings to sustain them through a prolonged period of illness.
"In this time of greater austerity and cuts to public spending and benefits it is important that employees and employers are aware of their entitlements," he said.
"Furthermore we are seeing the onus for protecting an employees' income move from the state to the employer and individual.
"The group risk market has the opportunity to really highlight the value of employee benefits in ensuring security and peace of mind, at a time of stress when it offers most support," he added.
