Group Income Protection

A group income protection scheme can help both employers and employees in the event of a member of staff’s long term sickness.

A group income protection scheme can help guard against this by providing the employer the financial resource to guarantee an income to employees who are unable to work as a result of either illness or injury. It can help demonstrate a positive approach to staff welfare by providing financial support through what can be both a financially and emotionally stressful time.

Many schemes now also incorporate an Employee Assistance Programme thereby ensuring that both the employer and its employees have access to an ever increasing range of injury, sickness and even financial counselling and support.

Benefits for Employers:

  • A scheme can usually be structured with premium rates that represent a low percentage of the employer’s payroll.
  • A wide variety of features can be incorporated into any scheme meaning that it can easily reflect an employer’s requirements.
  • Contributions are normally allowable as a business expense for the employer thereby reducing the net cost.
  • Cover is also available for pension contributions as well as the employer’s National Insurance contributions.
  • The scheme can be structured to provide varying levels of benefit for different groups of employees.
  • A well-structured scheme enhances the employer’s image in the eyes of the staff and encourages staff loyalty.
  • The availability of counselling and support services that an employer might otherwise consider paying for.
  • Additional experts report in managing any rehabilitation to the workplace.

Benefits for Employees:

  • Any premiums paid on an employee’s behalf are not normally treated as a benefit in kind.
  • Financial assistance at a vulnerable time.
  • A scheme can offer a Free Cover Limit, therefore meaning that medical evidence is often not required at all.
  • Access to a wide range of support services for an employee and their family.
  • The possibility of maintaining retirement plans even through periods of long-term incapacity.

The above information regarding taxation is based upon our understanding of current legislation which, of course, is liable to change in the future and would depend upon an individual’s financial circumstances.

Please contact us today for more information regarding how we can help advise you regarding your Group Income Protection.