Group Income Protection
- Provide employees with a monthly income
- Speed up rehabilitation and recovery
- Receive assistance with absence management
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What is Group Income Protection?
“Group Income Protection provides extra financial support to poorly employees beyond the usual statutory sick pay allowance. Most policies also include rehab support to help employees recover and return to work faster. This can include access to virtual GP services, second-medical opinions, mental health specialists and more.”
An Income Protection policy provides a monthly payment to an employee when they suffer an injury or illness which is impacting their ability to work. This payment is worked out as a percentage (usually up to 75%) of the employee’s salary. An employer can also choose to cover pension and National Insurance contributions too.
Some employers will set a “deferment period” that is designed to kick in after 28 weeks (the time at which statutory sick pay comes to an end), but employers can set the deferment period shorter than this, so that employees can benefit sooner.
Group Income Protection is sometimes referred to as ‘Sick Pay Insurance’, ‘Employee Income Protection’ or even, ‘Business Long-Term Disability Cover’, but it all means the same thing.
Hooray Health & Protection specialises in helping start-ups and small businesses negotiate the world of employee benefits. We offer FREE one-to-one advice and we promise that no question is too basic!
How can Hooray help me with Group Income Protection?
Free consultations:
You can arrange a fact-finding call with one of our friendly consultants and learn more about buying Income Protection for your business.
Free quotation service:
We compare insurance offerings from across all the different insurers to ensure you get the best deal.
Free ongoing support:
You can continue to ask us questions long after the policy has been purchased.
Free claims support:
People like working for companies who look after them and their families. A life insurance policy is a good way to show employees that you care.
Free policy reviews:
We review any current policies you have in place and assist with the renewal process.
Help & Support?
Please call us on 01273 222805 or email [email protected]
Can Income Protection reduce staff sickness and speed up recovery?
Yes, absolutely! Around 80% of group sick pay insurers offer Employee Absence Reduction and Early Intervention & Rehabilitation services, which are designed to do just this.
Employee Absence Reduction:
A good Income Protection scheme will include ongoing health support tools for employees – whether they are ill or not. For example, Canada Life’s policy includes virtual wellbeing support via WeCare, which includes virtual GP access and wellbeing tools, but it also has a mental wellbeing app called MyStrength. Many insurers offer something similar and this can massively increase the value of having the policy in place.
Early Intervention Services:
Most insurers will look to provide early intervention services within a Group Income Protection scheme. Many people we talk to are surprised by this, but think of it this way: it’s in everyone’s best interests. The shorter the absence, the less money the insurer has to pay out, the lower the absentee rates for your business and the healthier your employee.
An Early Intervention Service can be put straight to use before an employee has to make a claim on the policy. This service will include clinical confidential support to ensure that the employee has everything they need in order to get well sooner.
According to data from Metlife, 94% of employees return to work within the first four weeks of their absence once the early intervention team has been notified.
As an insurance broker, we believe that early intervention is an incredibly important tool to help with absence management. Getting help on day one of notification of absence is paramount to preventing long-term, preventable absence issues.
How much does Group Income Protection Cost?
Unfortunately, there’s no simple answer as it varies wildly from business to business. The easiest way to find out is to request a quote at the top of this page and we can arrange competitive and accurate quotes with no obligation to use our services..
An insurer will make it’s assessment based on the following factors:
- Industry/Occupation
- Claims history
- Average employee age
- Location
- Combined salary to be covered
- Pay out time limits (two years, five years, indefinite?)
Among other factors.
Of course, every company has its own budget limits and so a scheme will have to be adapted accordingly. All this information will be used to select an appropriate level of sick pay cover.
All of the above will contribute to how much your group sick pay insurance costs, but a quick consultation with a broker will give you a more precise idea. If your company already has a Group Life Insurance policy, you may also be able to get a discount by placing them both with one insurer.
Hooray Health & Protection’s team of experts can help negotiate these deals for you by leveraging contacts from across the insurance market. Simply use the chatbox on the right or call 01273 222805.
Designer Group launches Income Protection scheme
We recently worked with a company called Designer Group who were looking to review their benefits scheme and introduce Group Income Protection Insurance. The company already had various benefits and insurance schemes in place – but they were paying over the odds and dreaded having to make claims on behalf of employees.
To cut a long story short, we fixed all the problems they were facing and reduced the burden on their HR team, as Kerry Noblett, HR Director at Designer Group explained:
“We received a significant refund from our previous provider, due to us unknowingly overpaying for services. This was credit to Charlie and his team for persevering and managing this with the provider. Needless to say, I was definitely in the good books with our Finance Director, once I made him aware of the refund!”
It’s all too common for companies to be paying too much for their insurance while getting little in return – bar a headache. That’s why a broker like Hooray can help. It’s a complex industry and without expert support it’s easy to go wrong. Our experience working for some of the largest employee benefits insurers in the world means we can offer an insider’s view into how different policies work and how they calculate the price of Group Income Protection and other insurance schemes.
We also know how claims managers assess the validity of sick pay insurance claims, so if you have a claim denied we will check if you have a strong case. If we think you do, we will take it up with the insurer.
Is Group Income Protection taxable?
From our experience in the industry and cases we have worked on, we generally see Group Income Protection benefit both employers and employees from a tax perspective. As they are paying for the benefit, employers will usually be entitled to get corporation tax relief on the premiums paid.
Employees can also benefit from the fact that the policy is not usually treated as a taxable P11D benefit in kind, so no additional tax is usually paid by employees. However, we specialise in employee benefits broking rather than tax! So, we always recommend liaising with your accountant or tax adviser for those queries – it’s a liability thing!
How to set-up an employee Sick Pay Insurance policy
Fortunately, it is easy to arrange employee Sick Pay Insurance. We will have an initial ‘fact-finding’ call to discuss your business, understand your requirements and establish which variations are most suitable for you and your employees.
Once that has been established, we will reach out to our insurance partners and negotiate the right price for your business’s unique risk profile.
From here, your consultant will then arrange a call and talk through their findings and provide a recommendation for your business.
There will never be surprise costs for you, as we are paid a commission from our insurer partners for placing your business with them.
Why do you need Group Income Protection?
Every UK employee has the right to statutory sick pay when they become ill. Right now, it amounts to £116.75 a week for up to 28 weeks (as of July 2024). But many employers choose to do more to protect the financial and physical health of their employees by investing in Income Protection.
Not only can Sick Pay Insurance provide extra financial support during the 28-week period, it can also last beyond that – helping employees when they need it most.
Here are 5 reasons why you should consider offering Income Protection coverage:
Shows you’re an employer who cares
The biggest reason that businesses invest in Group Income Protection policies is the support that it allows them to offer their employees. You can show your employees that you genuinely care about their financial wellbeing and that you don’t just see them as another clock-in, clock out automaton.
Gives employees a sense of financial security
Sick pay insurance allows your employees to have peace of mind that you are providing them and their families with financial protection when it is needed the most. Whether it’s a short-term or longer term absence, Income Protection can make a crucial difference to an individual or families financial wellbeing.
Makes you stand out as an employer of choice
A strong benefits package can really help attract the best people to your company – and also keep them there! Income Protection Insurance is a real practical benefit which cuts across different age groups and demographics – realistically, it can be needed by anyone at any time.
Gives you access to absence management specialists
With a Group Income Protection policy in place, you get access to rehabilitation and absence management specialists from day one, or as soon as you find out an employee is sick. The scope of services will vary depending on the policy, but they are all designed to ensure that employees get better sooner and, therefore, are able to make a speedier return to the workplace.
Provides business support
The insurance provider will help you take control of the situation, as well as mitigate any potentially catastrophic long-term damage caused by absences. Depending on which sick pay cover you choose, you can even source financial support to temporarily replace an employee.
What is an Employee Assistance Programme?
Employee Assistance Programmes (EAPs) are provided for no extra cost with most private Sick Pay Insurance schemes and are usually outsourced to professional workplace health and wellbeing providers. They are 24/7 confidential helplines for employees to discuss matters such as:
- Mental health
- Financial wellbeing
- Legal issues
- Medical problems
- Workplace stress
Employee Assistance Programmes will also usually cover face-to-face sessions for up to an average of five sessions with a trained counsellor within 15 minutes of your home or work address. All employees of a company (not just those covered under the Group Income Protection Insurance) will have access to the benefit. They just need to complete an initial telephone assessment with a trained counsellor first.
These programmes are completely confidential for the employees who use them, and anything disclosed in the sessions will not be reported back to their employers. This is one of the reasons that insurers tend to outsource such services, as it helps the employee to build a trusting relationship with a wellbeing professional and avoid the daunting task of discussing traumatic issues with the insurance company assessing your claim.
Can Group Income Protection be purchased by small businesses?
If you are a small business owner and your company has at least two employees (including yourself), we can help to provide Group Income Protection insurance. Typically, most of the insurers in the UK market will only provide cover to companies with at least ten employees, but at Hooray Health & Protection, we work with insurance providers that can provide cover for just two – and we still charge NO fee.
Frequently Asked Questions about Group Income Protection
Who We Are
Hooray Health & Protection is an award-winning employee benefits broker that helps start-ups and SMEs better look after their people. Our service is provided FREE of charge, our advice is given in your best interests, and we’re always happy to help, however complex or simple the query.
Accolades and awards
Hooray collected multiple awards from the industry’s leading minds at the Health & Protection Awards 2024.