Income Protection Insurance

Long-term absence through sickness, injury or accident is a recipe for disaster for your business bottom line. It can place a huge strain on resources, and also impact on both productivity and morale when employees are required to cover the absent role.

The Essentials

• Long-term absence (6 months+) costs businesses £6.5bn per year (Centre for Economics and Business Research)
• Group income protection policies paid out £466.5 million a year in 2017 – an increase of £107.8 million in 2016 with the average claim amount of £24,257 a year. (Employee Benefits)
• Offers a replacement income stream to support the employee, usually until he/she comes back to work or retires (whichever happens first)
• Speak to our specialist employee benefits advisers for more details and a tailored quote

Why Income Protection Insurance?

• Roll out an active strategy to protect both your employees and your business against the financial impact of employee absence.
• Claimants receive Occupational Therapy to facilitate early return to work
• Create an attractive recruitment and retention tool
• Offers the opportunity to temporarily replace absent staff
• Solidify employer/employee relationships by demonstrating a tangible commitment to protecting your team
• Assist employees and their families in dealing with the physical, emotional and financial impact of long-term absence

A fair and transparent policy will also:

• Minimise the risk of overtime payments for employees covering the absent role
• Avoid unauthorised absence or inappropriate use of sick pay schemes
• Expedite the employee’s return to work
• Avoid the pressure of extending Statutory Sick Pay and draining company resources

How to Choose your Policy

Our expert independent advisers will use our experience, knowledge and access to a high-quality network of providers to secure the most effective protection solution for your business.

There are three essential points to consider before choosing the right policy for you and your workforce. These are:

• The length of your deferred period (how long you choose to wait until the policy pays out)
  – Usually from one week up to 12 months.

• Whether to opt for a short- or long-term pay-out plan
  – As short as 12 months or all the way up until retirement

• The level of cover required
  – Standard cover is between 50%-80% of the pre-incapacity salary