Group Income Protection

Sickness absence is a serious problem. It can cost up to 16% of your payroll with on average nearly 7 days lost annually per employee. More than 2 million people in the UK were incapacitated for more than 6 months in 2004 and it is 26 times more likely that an employee will suffer disablement resulting in more than six months off work than to die before the age of 65.

Group income protection (GIP) provides a replacement to regular income promised in a contract of employment in the event of one of one or more employees being unable to work and suffering from loss of earnings as a result of injury or illness.

Employer advantages

• Flexibility of scheme design to suit budget
• Helps demonstrate level of care
• Proactive absence management to help support a return to work
• No need to provide financial support to an employee suffering long-term incapacity from work
• Can improve staff recruitment and retention
• Premiums normally allowable as business expense

Employee advantages

• Peace of mind by securing financial provision for family and dependants
• Proactive support through rehabilitation to help focus on positive outcome and return to work
• Not considered as “benefit in kind” for P11D return