Why should employers buy group income protection for their employees?
Your employees are at the heart of your business. You care about them and want them to be at their best.
Group income protection is a great way to make your employees feel secure. It’s an employee benefit that will protect their finances if they’re unable to work because of an illness or injury, providing a replacement income of up to 80% of their salary.
We take a look at why all employers should put income protection in place for their employees.
Group income protection in a nutshell
As an employer, it’s important to consider how you might support an employee who is off work for a long period of time. Supporting them when they need you is the right thing to do and will also have a positive impact on the way their close friends and colleagues view your business.
Income protection is paid after an employee has been off work for a defined period, usually six months, as this is when they would no longer be entitled to Statutory Sick Pay. The insurance continues to pay the income until the employee is well enough to return to work or they reach the end of the payment period.
Group income protection also provides proactive rehabilitation, supporting your employees to return to work as soon as possible.
Attract the best talent
You need the right team to succeed. You want to attract the best talent to your business, and keep them. Employee benefits, like group income protection, are a great way for you to differentiate yourself from the competition to prospective employees.
Group income protection offers your employees financial support if they can’t work, and by buying the benefit for the whole of your business, the cost per person is cheaper than if they were to buy income protection themselves. This means you can provide your employees with a benefit they will really value, at a much lower cost.
Peace of mind for your employees
Early intervention is so important. Providing additional help and support at the early stages of your employee’s absence can mean they get back to work quicker, resulting in less financial worries. Group income protection provides expert vocational rehabilitation to deliver the support your employees need at the beginning of their absence.
But for those still absent after 28 weeks, statutory sick pay ends. Having an income protection plan in place provides your employees with the peace of mind knowing they will be financially supported while off work. That’s invaluable.
Insured employees, and their immediate family, will also get unlimited access to Smart Health. Smart Health provides on demand access to UK registered GPs, mental health specialists, nutritionists and much more, allowing your insured employees to look after their health and wellbeing and be at their best.
Here’s a few more reasons why you should consider group income protection:
- Extra support: As well as vocational rehabilitation and Smart Health, we also provide access to LifeWorks, our employee assistance programme which offers advice, information and support to all employees in the organisation. This can include information about legal or financial matters, or face to face counselling to deal with a recent bereavement for example.
- No medical questions: With the insurance covering all employees in the organisation, or within a clearly defined group or management grade, in most cases your employees won’t need to answer any medical questions.
- It’s tax efficient: The premiums you pay are not treated as a P11D benefit for your employees, so there is no tax charge. The premium payment is considered a business expense for corporation tax purposes.
- It’s simple: Once set up, you only need to provide routine membership data a few times a year at most.
Group income protection provides long term financial security to your employees protecting them against the financial impact of being unable to work due to illness or injury. It’s simple, cost effective and there’s usually no medical questions. It benefits both employees and employers – providing proactive rehabilitation to support your employees to return to work when the time is right.
Additional benefits with AIG’s group income protection
Explore the additional benefits available with AIG’s group income protection.
All insured employees can benefit from Smart Health.
From on-demand consultations with UK based GPs, to expert case management service with the world’s top medical specialists, our Smart Health service is a convenient way to connect your employees to tools that help manage their health and wellbeing from anywhere in the world, 24/7.
LifeWorks is an Employee Assistance Programme that not only offers best-in-class practical and emotional support for employees, it also gives them and their employers a chance to personalise the experience.
- Proclaim Care
When an employee is unable to work and needs to take time off, our vocational rehabilitation programme is there to help them get back on their feet and into work when they’re ready.
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Smart Health, is a non-contractual benefit, meaning it doesn't form part of an insurance contract with us. It can be withdrawn at any time without notice.