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Why is Group Income Protection Important?

Why Is Group Income Protection Important?

There’s a lot of different types of insurance out there, and Group Income Protection is one of them. However, the question is, what makes this form of insurance so important? Well, Group Income Protection is all about keeping your staff financially stable and ensuring that you can keep your business afloat when the worst happens. 

It’s one of the most important forms of insurance to have, and it is one of the most popular requests to employers that offer insurance coverage. 

What is Group Income Protection? 

The whole point of Group Income Protection is that if you suffer from an illness or injury that leaves you unable to work, you will still receive a portion of your monthly salary. This will usually be up to 80% of the gross amount you earn allowing you to maintain your key expenditure, such as your mortgage/rent, bills, and food shopping. 

Schemes will have a deferred period during which you can’t claim but most companies will have a sick pay procedure for that period if you’re found to be un-fit for work, ensuring that you aren’t left stressing about finances. Over 31% of adults end up on leave due to illness or accident, so income protection is a sensible choice to ensure your employees stay financially secure and help your business attract and retain the best staff.

What Does it Cover?

It covers nearly any illness or injury that prevents you from working, and this includes things like accidents and illnesses such as cancer. What a good broker or insurer will do is cover you in your own occupation. So, if you cannot perform your specific job role you will be covered by the insurance policy and able to make a claim. 

As with all insurances Group Income Protection does have exclusions such as only paying out if the employee seeks treatment, but Hooray Health & Protection discuss this during your policy set up.

Why should I take out Group Income Protection?

The reality is that something happening to you is a very real possibility as we can see from the annual accident and sick statistics. Therefore, ensuring that you are protected financially gives you a safety blanket that will allow you to continue providing for your family while you take time to rest and recover. Illnesses and injuries are almost impossible to bounce back from in good time if you’re constantly stressed and worried.

For employers who are considering offering this to their workers, this is one of the best ways to attract good talent and retain your staff. People want to work in an environment where they feel they are protected if something happens instead of being disposable. Employees will work better and more productively, and they will be less willing to leave for another job because of the benefits you are providing them with. 

Group Income Protection also provides early intervention benefits which can help support employees back to work with return to work plans, funding treatments, counselling etc.

Employers who also provide Business Health Insurance need to ensure their employees are claiming on the right policy as GIP can pay for private health treatment to help support the employee back to work, so is always best to consult with all insurers.

To Conclude 

Peace of mind is key, and when you are worried about how you are going to make it until next week recovery feels impossible. With Group Income Protection, you get the peace of mind you deserve, and if you are providing it to employees, they will work better knowing they are fully covered if anything happens.

Charlie Cousins

Founder and Director of Hooray Health & Protection, Charlie Cousins has enjoyed a career in the insurance and financial services industry spanning over the last ten years.

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