Group income protection (GIP) aims to provide an income to an employee when they are unable to work long term, as a result of an illness or injury. Payment usually starts after a set waiting period and can continue until the employee returns to work or, if earlier, the end of the policy.
Additionally GIP can provide a range of additional services to support your employees including rehabilitation services, such as counselling or physiotherapy, and can also provide partial benefits if an employee returns to work on a part-time basis.
It is designed to help employers by:
Alan Boswell Financial Planners are one the UK’s leading, truly independent, financial advisers providing a range of flexible employee benefit solutions for businesses.
We can help with all your employee benefits including: Workplace Pension/Auto-Enrolment Schemes, Group Income Protection Schemes, Death in Service Schemes, Critical Illness Schemes and Flexible Benefits
Group income protection is a valuable benefit to both employer and employee.
GIP is very flexible. You can decide how much of an employee’s salary is covered, when the payments will start, how long they will last and how they get paid.
GIP beneficiaries may also have access to a range of additional solutions to help get back to work. Your policy may include an EAP – employee assistance programme, providing absence and claims management tools, GP access, physiotherapy, 24/7 counselling support and clinical rehabilitation support services.
Yes, you can choose the level at which you set your GIP cover and is usually based on the % of an employee’s earnings. As an example you can set your GIP to pay out 50% of an employee’s salary, or 75%.
Your premium payments to the insurance company are tax-deductible and treated as a business expense. The income received by an employee as a salary replacement is also taxable under PAYE.
As an employer you don’t have any obligations to offer income protection insurance. But it is a very valuable benefit.
According to the ABI, one million workers a year find themselves unable to work due to a serious illness or injury and if something happens which means one of your employees couldn’t pay their bills it could be disastrous.
As the Coronavirus pandemic continues to dominate headlines, our Group Protection teams have been busy understanding the implications of the virus on the protection markets and what businesses need to consider for their scheme members.