I was working full-time until earlier this year, when I was asked by my employer to take sick leave.
I don't now how it works in other countries, but in Australia you really have four options:
- sickness allowance/disability support pension
- income protection insurance
- live off savings/family
- become homeless
Sickness allowance is paid by the government, but it's a pittance and approval is a long and drawn out process. It's also going to be phased out and replaced with jobseeker allowance in early 2020 (yep, the government is going to make sick people try and apply for jobs ... that's a conservative right-wing government for you, but I digress). Disability support pension is a longer term payment, but again ... tough and stressful to apply for, and you tend to get treated like crap in the process.
As a result, many working people over here take out income protection, although in some cases an employer may pay the premium for you. I'm extremely fortunate in that I have income protection and my (now former) employer paid my premiums, although I've had some form of income protection insurance since my early 20s (back when I was paying for it myself).
Income protection payments are usually around 75% of the insured's usual post-tax income. These payments are made until the insured is working again, ususally with a maximum payment term of 2 years (although you can buy policies that pay until aged 65, but these are quite expensive). After 2 years on income protection, I'd either need to try and get another job (even if I've not recovered) or put in a claim for a total and permanent disability insurance payout ... that's under a different policy (again, I've had one of those since my early 20s, and would strongly recommend any working Australian to have this).
I've still got another 15 months or so until my income protection runs out, but I'd prefer to go back to work sooner if at all possible. I'm doing volunteer work at the moment, but tbh it's making my condition worse so I'll probably need to stop doing that soon.
Again, I can't understate just how fortunate I am to be insured to the point where I feel almost embarrassed about it. In case you're wondering, I check my privilege several times a week due to being so self-conscious of it.