Group Income Protection

Protecting income

Income protection for employees and directors

What is group income protection

Group income protection (GIP) insurance can provide employees with peace of mind that their income will be covered in the event of being off work. It is important employers understand, and make full use of, additional health-related benefits that commonly come with GIP policies, including access to an employee assistance programmes and early intervention services.
“A happy and healthy employee is more likely to be a productive one” is a wisdom that is finally catching on with employees and businesses.

Financial wellbeing is a trendy topic at the moment, and rightfully so. Companies realise that financial stability is a major element in their employees’ health and wellbeing, and that they need to do anything they can to support them in that area. Income protection insurance is one of the major factors in providing employees with the pace of mind they need to feel valued by the company and financially supported by the policy in the unfortunate event they need to use it.

 A group income protection scheme is set up by employers to provide an income to employees in the event that an employee is unable to work due to ill-health or serious injury. Group income protection will give the employee an income to make up lost earnings during the time they are recovering and is a corporate benefit unlike SSP.

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.

What are the benefits of group income protection?

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.

Basic level income protection policies are likely to offer the following level of cover:

• 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.

Call 07843630997 or email