Group Income Protection

Group Income Protection provides the benefit of a continuing income if an illness or injury prevents an employee from working or they have to work reduced hours for a prolonged period of time. Benefit is usually paid after a deferred waiting period and can be payable until death, retirement or for a fixed period.

Defining The Amount Of Cover

The benefit multiple is determined by the employer. Providing the level of benefit remains below the ‘free cover level’, no medical evidence is required. Benefit above this level will require a medical questionnaire to be completed and the premium may increase depending on the medical information.

Benefit can also include pension contributions, employer’s national insurance contributions and can be escalated whilst in payment. The employer determines the options, including level of benefit, deferred waiting period and term. The employer usually obtains corporation tax relief on premiums and is not regarded as a benefit in kind. The benefit is normally paid to the employee via the employer’s standard payroll system on a monthly basis.

Employee Assistance Programme

This programme is generally provided within a Group Income Protection scheme at no additional cost. It provides support to employees via telephone or face-to-face counselling services to deal with any issues at home or work, which could affect their wellbeing and the organisation’s productivity and level of absenteeism. This represents a chargeable benefit, but in certain circumstances welfare counselling provided by an employer for its employees is exempt from tax.

For more information about our services or to speak to one of our consultants, simply complete our enquiry form, send us an email or call our Cambridge office on 01223 357131 or our Norwich office on 01603 661156.