Group Income Protection

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What is group income protection insurance?

Group protection insurance provides cover for an employee is unable to work for a long period of time as a result of illness or injury.

Employers are able to provide their employees with financial security in the event of an illness by guaranteeing a replacement income during extended absence.

A group income protection insurance policy is paid for by the employer.

On the whole, group income protection insurance supports the policyholder to manage long term absence in a sufficient way.

The key word here is ‘group’. When you choose to do something collectively, there is usually a benefit for everyone and this this the case with group income protection – there are a host of benefits from this collaboration.


Who benefits from group income protection insurance?

Group income protection insurance benefits both the employer and employee financially. In addition, group income protection insurance can be advantageous in attracting first-rate employees.

Employers are legally obliged to pay statutory sick pay to any employee who is absent from work due to illness or injury for up to 28 weeks. There can be financial implications as a result, which group income protection cover can help to reduce.

Besides the financial support during their absence from work, employees can also access rehabilitation services including physiotherapy and psychological treatment as part of the policy cover, intended to facilitate a return to work. Rehabilitation also includes continuing support for employees who are stressed, endorsing their recovery while also preparing and equipping the employer up for the employee’s return to work.

Benefits are typically paid until the employee is fit to return to work,  or until the policy ceases. This is usually upon retirement.


Who is eligible for group income protection insurance?

It is up to the employer to choose who is included in a group income protection scheme, as not every employee has to be a member.

Sometimes group income protection insurance is only for the senior members of staff within a company. For many employees you have to pass the probationary period before receiving any perks such as group income protection insurance.

Employers can also match the cover or policy level with the position of an employee within the company, with greater benefit levels as employees are promoted.