Our solutions
Group Income
Protection
Group income protection is taken out by an employer to provide sick pay to employees if illness or injury prevents them working for a prolonged period.
Group income protection providers support employees to help them return to work with reasonable adjustments made by their employer but if the employee cannot work due to illness or injury the policy will pay a benefit of a proportion of their salary. The benefit is paid to the employer and then passed on to the employee through the PAYE system. Generally, premiums paid by an employer to provide cover for employees can be offset against corporation tax and are not regarded as a benefit in kind.
Why do companies offer Group Income Protection?
Group Income Protection is one of the most important features of our extensive Employee Benefits Programme. It offers replacement income for employees when they are unfortunate enough to be unable to work for an extended period. Whilst this in itself is great, the Insurers also work with the employee and ourselves to ensure they return to work as soon as they possibly can provided they are able to do so. We also find the additional benefits of the policy invaluable, such as the insurer’s rehabilitation services, manager training programmes and most importantly the Employee Assistance Plan which offers advice and counselling to staff when they have a problem, which may well in itself prevent an absence from happening.
The numbers
Some facts and figures
3,255,185
The number of people the group risk market insured in 2023 for annual income protection benefits totalling nearly £125 billion
£633,596,686
The group risk industry paid out £634 million in income protection benefits to a total of 17,634 people during 2023
£27,206
The average annual new claim paid in 2023, with the main causes for claim being cancer (24%) and mental illness (21%)
The embedded support within a group income protection policy means that the business, line managers and employees can benefit daily whether or not a claim is made.
In total, there were over 440,000 interactions during 2023 with the additional help and support services that are provided by group risk insurers – GRiD 2024 Claims Survey.
Expert advice should always be taken when setting up or reviewing a group risk insurance scheme to ensure that optimum cover is provided, any extra support services offered alongside the policy are used and all tax efficiencies are maximised.
Solutions
Other group risk products
Group
Life Assurance
This solution provides a benefit on an employee’s death, with a tax-free lump sum up to the Lump Sum and Death Benefit Allowance. Benefits can be provided via the Registered or Excepted Trust routes.
Group
Critical Illness
Group Critical Illness works by paying a tax-free lump sum to an employee on diagnosis of one of a defined list of serious medical conditions or on undergoing one of a defined list of surgical procedures.
