What is group income protection insurance and why should you care?
Group income protection is a policy taken out by an employer to cover a promise to provide sick pay to employees if illness or injury prevents them from working for a prolonged period which is normally viewed as four weeks or more.
The policy helps support employees to return to work by helping employers make reasonable adjustments in the workplace 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 can be offset against corporation tax and are not regarded as a benefit in kind.
Health and money worries are the biggest cause of stress for employees in the UK.
When people are stressed about their finances, it affects their mental, physical, and social wellbeing.
And guess what? It also has a significant effect on how often they show up and how well they do their job. Did you know that in 2022 there were around 1.4m people of working age in the UK off on long-term sick leave?
It might come as a surprise, therefore, that only some 10% of UK employees have income protection insurance provided in the workplace.
Group Income Protection schemes are clearly often overlooked, but these policies can be a great way of looking after your employee’s financial, mental and physical well-being if they are off sick for a prolonged time.
These schemes can be crucial in bridging the gap in times of personal health challenges.
So, what is group income protection insurance, and why should you care? Let's delve into the details.
What is Group Income Protection Insurance?
In times of long-term illness or injury, Group Income Protection Schemes offer an important safety net for employees facing the financial impact of long-term illness or injury, providing crucial support during challenging times.
Group Income Protection steps in to provide your employees with a financial safety net, ensuring they receive income when unable to work.
This valuable benefit supports them by covering a significant portion of their income, typically around 70%, as they focus on their recovery. Importantly the policies also provide rehabilitation support for employees. This support and advice is given in addition to financial support to help employees return to work smoothly, and sometimes sooner, benefitting both the employee and the employer.
What's more, the flexibility of the scheme allows for an extension to include National Insurance and Pension contributions.
This means your staff can rest easy, knowing that they won't face financial challenges down the road due to unforeseen health issues.
How does Group Income Protection help?
1. Delivering Peace of Mind
Illnesses and injuries can strike when least expected.
Group Income Protection insurance acts as a reliable shield, providing peace of mind to both employers and employees.
It ensures that your employees will be cared for financially if they can't work long-term due to unforeseen circumstances.
The peace of mind derived from this protection fosters a positive work environment.
2. A Cost-Effective Approach
Group Income Protection Insurance can be a cost-effective solution.
By spreading the risk across a group of employees, the financial burden is spread, making it affordable for employers.
It's a smart investment in your workforce's stability without breaking the bank.
3. Retaining Staff Through Care
Employee retention is a constant challenge in the competitive world of business.
Group Income Protection Insurance can be a game-changer, showcasing your commitment to the health and wellbeing of your team.
Demonstrating care for your employees' wellbeing through this insurance can contribute significantly to staff retention.
Statistics show that 82% of employees who received support either remained in or made a successful return to work.
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4. Becoming Standard Across Industries
Group Income Protection schemes are no longer a luxury but a standard offering across diverse industries.
Forward-thinking companies recognise the importance of such schemes in creating a supportive and secure work environment.
As it becomes a norm, adopting Group Income Protection Insurance positions your company as one that values and prioritises its employees.
5. Desirable to Employees
In the quest for top talent, employers are increasingly evaluated not just on the salary they offer but on the holistic benefits package.
Group Income Protection Insurance is a desirable perk that can set you apart as the pandemic has focused people’s minds on health and wellbeing more than ever.
Job seekers are drawn to companies that prioritise their wellbeing, making your organisation more attractive in a competitive job market.
Including this insurance in your benefits package signals to potential employees that you are invested in their long-term security.
Get Expert Income Protection Advice from Bravo Benefits
Choosing the right insurance for your team can be daunting.
Missing crucial details may result in insufficient coverage.
Our Group Risk Advisors, with years of experience, ensure certainty in recommending the best financial cover tailored to your employees' needs.
Get in touch with one of our Group Risk Advisors today.
Safeguard Your Team's Financial Future
Group Income Protection Insurance is an investment in the security and stability of your workforce, providing peace of mind to both you and your employees.
As it becomes a standard across industries, adopting Group Income Protection Insurance is not just a wise financial decision but a strategic move that enhances your company's reputation and competitiveness in the market.
