Why group income protection matters
In the current economic environment, group income protection could have an important role to play for your business and your employees.
The cost-of-living crisis and its impact on disposable income is still with us. Research from Legal & General research has found that almost two thirds of UK adults (64%) are concerned about the future due to the
current state of their finances, whilst more than half (56%) feel they’ve already done everything they can to save money.
This is why income protection is important. If their pay stops because of physical or mental ill health, they might not be able to cover basic living costs like housing or even food. Yet other research shows that engagement with income protection is low.
A group income protection scheme gives employers a way to help, by offering their employees extended sick pay without having to use revenue and profits from the business. It also helps the business.
Group income protection helps your business effectively manage the impact of staff illness by paying a monthly income to employees on prolonged sick leave. It often comes as a comprehensive service that offers not only financial support, but also services that can help your people get back on their feet faster. In some cases, this includes counselling, physiotherapy, or other collaborative support.
The benefits for businesses of group income protection include:
- Reduced financial impact from long term staff sickness
- Helps to attract and retain staff
- Demonstrates a culture that prioritises health and wellbeing
- Prevention or reduction of staff sickness through mental and physical health assistance services
- More predictable cashflow management
- Under current UK tax laws, premiums usually qualify as an allowable
business expense, so can reduce a company’s corporate tax liability.
For employees, income protection can provide a lifeline of support during a very difficult period. They will benefit from the peace of mind that they will be well taken care of financially, without their long-term absence draining company resources.
Many group income protection policies also include additional health and mental wellbeing support services, so your team can benefit from the best possible care and support.
Common benefits for employees include:
- Financial support and income security against long term illness or injury
- Holistic health support
- Employee assistance from self-help tools and services to help
employees detect, prevent, and self-manage conditions to tailored
clinical intervention, rehabilitation support and return to work
support.
The cost of group income protection depends on a number of factors, including the number of employees in the scheme, the overall payroll value, employee ages, occupation, location of work, deferred period and
cover period. Different schemes also offer a range of different features and options, so your group income protection scheme can be tailored to your exact needs.
Group income protection schemes therefore offer a great deal of value for both companies and employees. Apart from the monetary benefit that they provide, they offer additional value through enhanced employee
benefits that can help recruit and retain staff as well as improve the sense of care and wellbeing amongst employees.
At Kellands Corporate, we specialise in group income protection, so if you think it makes sense for you and your company, please contact us today.