UK Group Income Protection

Purchase UK Group Income Protection Insurance

Group Income protection Insurance. Does your company ever tell you that you are their most valuable asset? Do they say it a lot? What do they do to prove it? Do they send you on the odd training course? Do they make sure that you have comfortable chairs to sit in? Do they offer you share options and/or a competitive bonus scheme? Well, even if they all of these, the best way to actually prove that they think you are valuable is by giving you security.

Security? Human Resources experts have recently carried out surveys into something call the "psychological contract", which is like an unwritten code of expectations which employees have of their employers. One of the aspects at the top of the list of expectations was not pay but rather security. The security that allows them to have confidence against whatever the future may bring. Group income protection policies show just how valuable a company thinks that their employees are.

Companies cannot really take out group ASU (accident sickness and unemployment insurance) policies as they are in too much control of the unemployment part of the policy because insurers will never believe that they don't know that redundancy might affect their employees. But insurers can't plan for illness amongst their employees or accidents causing injuries that stop their employees working.

This is what Group income protection policies do, they provide a replacement income should an illness or an injury stop an employee from working for a long period of time. It can be set up to pay the employee until retirement and leaves them not just relying on state incapacity benefit (at most about £7000 a year) by itself.

Furthermore, Group income protection policies protect the company's payroll from the financial impacts of employees' long term absence. The insurance company will take over sickness payments, which will go to the employer. who then passes them on to the employee, negating the need for the employee to be paid from pension reserves or company funds.

The benefits from this arrangement are clear. We know the direct costs of sickness, which are statutory and occupational sick pay and the extra recruitment and training costs of replacement staff. But the indirect costs are worse. You could suffer a loss of customers, morale problems with colleagues, quality effects and the extra management and administration time it takes up.

Keeping a sick employee on the payroll, funded by an insurance scheme, gives the following direct benefits: It allows the employee to continue making payments into their pension fund. It should allow the company to attract and retain employees and keep them loyal. Finally, it offers relief for the moral burden caused by a valued employee becoming unable to work due to illness or injury.

 

 

 

 

 

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