Group Income Protection
The group income protection policy is owned and paid for by an employer. Benefits paid out from a scheme are paid to the employer or company, not the employee who is sick or injured.
The benefits to the employer is the wellbeing of staff along with attracting, retaining and incentivising the right personnel. Employee benefits such as income protection are highly desirable as a benefit to high calibre employees and help to improve employee retention and loyalty. This can have a positive impact on the business and the cost of recruiting, onboarding and speed to competency of staff.
Payments for group income protection go through PAYE as though it’s part of the employee’s salary, it is then up to the employer to pass the benefit on to the employee, as net pay.
• Cover for up to 80% of an employee’s gross earnings
• Benefit paid until a specific age, or limited to between two and five years
• The employer’s liability for National Insurance Contributions
• Long-term additional benefits to cover employment costs, e.g. pension contributions
• Short-term additional costs paid for between six months and a year to cover payments to get temporary or replacement staff
• Final lump sum payment at the end of a payment period, to fund early retirement, for example.
• Upfront lump sum payment if an employee is unable to work for 14 days or more due to heart attack, cancer or stroke
Cover limits can vary dramatically between provider and level of cover selected.
Please contact us for a consultation on the cover options available to suit your needs.