Group Income Protection

Give you employees piece of mind. Income protection protects your employees salary should they be unable to work due to illness or injury.

What is Group Income Protection?

Group Income Protection insurance provides a guaranteed income for employees who are unable to work as a result of illness or injury, so you are able to financially support them through what can be an emotionally and financially difficult time. It can also assist you in effectively managing long term absence, with the additional services the insurer can provide as part of the policy.  Rehabilitation programmes are often available as part of the product, supporting employees through stressful times and encouraging their recovery and return to work

Group Income Protection can take a number of different forms; most usually it is designed to provide a percentage of the employee’s gross pay less the employment and support allowance (ESA). The benefit is paid gross and as the employer you deduct tax and National Insurance before passing it on to the employee as pay.

Benefits to Employees

  • Income Protection protects employee’s salary should they be unable to work due to illness or injury.
  • Central to any good employee benefits package it provides peace of mind for employees and their families.
  • 21% of people have suffered long term ill health during their working life. Therefore, this Group Income Protection is essential in protecting employees if they are unable to work. Met Life 2012

Benefits to Employers

  • If the company provides Group Income Protection to its staff it is not classed as a benefit in kind. It should however be noted that when the company pays the benefit via its payroll system, the income tax and National Insurance are deducted from the payments.
  • Scheme members still need to be medically underwritten by the Insurer, but there will usually be a ‘free cover limit’ up to which, members will be automatically covered without any underwriting.
  • A highly valued employee benefit which acts as an important means of staff retention and attraction.

Managing absence in the work place can be time consuming and can take focus away from running the business. Group Income Protection plans are more than just about paying long term claims, but will support the Employer in pro-actively managing their absence strategy.

SMQ Services Ltd is an appointed Representative of Health and Protection Solutions Ltd. Health and Protection Solutions trading as The Health Insurance Group is authorised and regulated by the Financial Conduct Authority.

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