Employees or self-employed may suffer illnesses or accidents that leave them unable to work for a certain time. A complicated flu, a depression, an operation that involves a long recovery time or even an accident at work can keep workers away from their jobs. In the latter case, the General Union of Workers (UGT) indicated in its latest report on occupational diseases that 54 people a day are victims of an occupational disease. In addition, according to reports, every day two workers die in Spain as a result of their work, 11 suffer an accident and 1,414 have serious accidents.
Although workers receive a financial benefit from Social Security during sick leave, their monthly income may be affected. In the case of a self-employed person who works individually, such as a dentist or a physiotherapist, the earnings he normally receives may decrease during the illness. On the other hand, employees can also see their monthly payroll reduced, especially those whose salary includes bonuses or commissions for sales.
For this reason, some people decide to take out Temporary Incapacity for Work (ILT) or Sick Leave insurance. This policy ensures an income to the workers who hire it in case they suffer a leave due to an illness or accident, whether at work or not. The amount depends on the insurance premium and the conditions that have been contracted, but it is fully compatible with the subsidy offered by the Social Security.
Who can hire you?
To be able to take out the insurance for Temporary Work Disability you have to be a worker who quotes in the Social Security with an age between16 and 65 years. Volunteers (who do not get paid), students, unemployed people or those who live on income from inheritances and retirees are totally excluded when it comes to contracting a policy of this nature.
What does sick leave insurance include?
The main coverage of ILT insurance is the payment of a daily allowance in case the insured receives a temporary leave from a doctor due to an illness or accident. However, some companies offer some extra coverages on the policy.
Insurers may offer compensation if the insured had to be admitted to a hospital. The amount and duration of this compensation depend on the conditions of the company agreed at the time of contracting the policy.
Although childbirth is not a disease, some companies may include compensation in their coverage, as long as they exceed the grace period stipulated in the condition, which can be eight, nine or twelve months, depending on the company.
In the event that the insured dies, the insurance company would pay the beneficiary established in the policy an indemnity whose amount had been fixed in the contract.
Absolute permanent disability
The insurance company may include among its coverages compensation in the event that the insured receives absolute permanent disability due to an accident or illness. In the event that you receive this opinion from your doctor, you will not be able to return to work.
ILT insurance, with or without scale?
There are two types of ILT: with or without scale. A Temporary Work Disability insurance without a scale is usually more expensive, since the compensation is received for each real day that the insured is on leave. In this modality, it is the insured who chooses what will be the amount to receive, the duration and the franchise, at the time of contracting the insurance.
If the insured decides not to have a franchise, he would start receiving the compensation the day after the leave, however, if he set a 7-day franchise, he would not start collecting until a week after the designation of the leave.
On the other hand, if you opt for the Barmade insurance and suffer an accident or illness, you will receive the payment of compensation based on the days set in the scale of the insurance company and the capital you have contracted. For example, if you suffer a broken collarbone, the scale of your company is 50 days and the contracted capital is 100 euros a day, in total you will receive 4,000 euros of compensation.
Is it lacking?
Yes, ILT insurance has certain shortcomings. Not all of their coverages can be applied immediately after their entry into force, but they have a certain time stipulated during which the insured can not use them. Normally, the lack of compensation for illness is three months and six months for hospitalization or operation. However, these deadlines may vary from company to company.
However, if the insured has an ILT insurance previously contracted with another insurer, the deficiency would be eliminated.