Group Income Protection Insurance for Employers
• The policy pays a regular income to the employee after a pre-agreed waiting period (typically 13, 26, or 52 weeks).
• Payments usually cover up to 75% of the employee’s salary.
• Benefits continue until the employee returns to work, reaches retirement age, or the benefit term ends.
• Premiums are paid by the employer and are generally a tax-deductible business expense.
• Many policies include access to additional services such as early intervention support, occupational health assessments, and vocational rehabilitation.
As part of a wider employee benefits package, group income protection is an excellent tool for both attracting and retaining talent, while protecting the productivity of your workforce.
Key Benefits for Employers:
✔ Support Staff Through Illness – Helps employees manage financially during long-term absence.
✔ Demonstrates Duty of Care – Enhances your reputation as a responsible employer.
✔ Business Continuity – Minimises disruption by supporting return-to-work strategies.
✔ Cost-Effective Cover – Group schemes are typically more affordable than individual policies.
Short-Term vs. Long-Term Cover Options
Short-Term Cover
• Pays benefits for a limited time, such as 2 or 5 years.
• Lower premiums.
• Suitable for companies looking to balance cover and cost.
Long-Term Cover
• Pays benefits up to a fixed retirement age (e.g., 65 or 68)
• Offers robust protection for serious or ongoing conditions.
• Ideal for employers prioritising long-term support and staff welfare.
When designing a group income protection plan, consider:
Level of Cover
Decide the percentage of salary to be insured—commonly 50% to 75%.
Deferment Period
Select the waiting period before benefits begin. A longer deferment reduces cost but requires other short-term support.
Benefit Duration
Choose between short-term cover (e.g., 2 or 5 years) or long-term cover to state retirement age.
Additional Services
Many insurers include wellbeing resources, mental health support, absence management, and HR support—all of which can reduce claims and support earlier returns to work.
The cost of cover depends on several factors:
• The age and size of your workforce.
• Chosen benefit level and duration.
• Deferment period.
• Industry and job roles covered.
Premiums are typically a small percentage of your payroll and are usually treated as a tax-deductible business expense.
