Income protection
Have you considered income protection insurance?
What is income protection insurance?
Income protection insurance provides you with a replacement income if you are off work long-term through illness or injury. Group income protection, for businesses, helps employers to safeguard the wellbeing of their staff by providing them with this cover.
How can long-term illness or injury affect businesses?
Our research shows that sickness absence can cost an organisation up to 16% of payroll – but not many companies have a policy in place.
- Employees on sick leave have to be paid - Statutory Sick Pay must be paid for 28 weeks, but many employers feel obliged to extend this
- Staff may have to cover for sick colleagues, impacting production, overtime payments and employee morale
- New staff must be trained to provide a replacement, temporarily or permanently.
What are the benefits of income protection insurance?
For employers:
- The cost of long-term staff absence through illness or injury is reduced
- The policy covers paying extended Statutory Sick Pay
- Employers can also cover other Associated Business Costs on the policy, e.g., pension and National Insurance contributions and Group Life premiums.
For employees:
- An income if they are unable to work because of long-term illness or injury
- Financial security for themselves and their dependents
- No need to rely on State Incapacity Benefits, which are difficult to claim and often not enough.
Are you looking to take out an income protection policy?
