Why Offer Group Income Protection?

Life is unpredictable. Long-term illness or injury can have serious financial consequences for employees. Offering this cover:

• Gives your team peace of mind

• Improves staff loyalty and morale

• Helps attract and retain top talent

• Protects business operations by supporting staff through recovery

Who Should Consider Group Income Protection?

Any business with employees who rely on their salary. It’s particularly useful for:

• Small and medium-sized businesses

• Companies with high-value or key employees

• Businesses looking to enhance their benefits package

How Group Income Protection Works

Employers set up a scheme covering eligible employees. If an employee is unable to work due to illness or injury, the insurer pays a percentage of their salary, typically between 50%–75%, until they return to work or reach the end of the policy term. Some plans also offer rehabilitation support to help employees get back on their feet faster.

Key Benefits of Group Income Protection

• Financial support for employees during sickness or injury

• Helps maintain business continuity

• Minimal administration for employers

• Flexible cover options based on workforce needs

• Enhances your overall employee benefits package

What is group income protection?

Group Income Protection is an insurance policy taken out by an employer to pay a portion of an employee’s salary if they are unable to work due to illness or injury.

Who is eligible for group income protection?

Eligibility is set by the employer. Most policies cover permanent employees, but some schemes include part-time or new starters after a waiting period.

How much of the salary is paid?

Typically, policies pay between 50% and 75% of an employee’s salary, but exact amounts depend on the plan chosen by the employer.

How long does income protection cover last?

Coverage usually continues until the employee returns to work or reaches the end of the policy term, which can vary by plan.

Does it cover all illnesses and injuries?

Most group income protection policies cover long-term illness and injuries that prevent an employee from performing their normal job. Some plans include rehabilitation or partial capacity support.

Is the payout taxable?

Yes, payouts are typically treated as taxable income for the employee, but the financial support helps maintain stability during recovery.

Do employees need a medical exam to be covered?

Most group schemes don’t require individual medical exams for standard coverage, making it quick to implement. Some policies may require underwriting for higher-risk employees.

Can employees continue receiving benefits if they change roles or responsibilities?

Coverage usually continues as long as the employee remains eligible under the scheme rules. Specific terms depend on the policy.

How does a claim work?

If an employee is unable to work due to illness or injury, the claim is submitted to the insurer. Once approved, the policy pays the agreed portion of their salary.

Why should a business offer group income protection?

It provides peace of mind for employees, helps with staff retention and loyalty, and ensures the business can maintain operations even when key employees are temporarily off work.