Group Income Protection is designed to pay a regular monthly benefit to staff if they are unable to work as a result of a long term illness or disability. Most schemes will pay benefit until State Pension Age, however there are several options that may suit your needs better.
It stands to reason that the insurers would rather staff be back at work undertaking their duties rather than simply paying money out, in an effort to assist you most insurers provide rehabilitation services which are aimed at a speedy return to work. A typical rehabilitation package could include counselling or therapy treatment, as well as giving guidance to the employer during that process.
The good news is that if the company provides Group Income Protection to its staff it is not classed as a benefit in kind. It should however be noted that when the company pays the benefit via its payroll system, the income tax and National Insurance are deducted from the payments.
The scheme is an annually renewed contract which, on the anniversary, takes account of leavers, joiners and changes in members’ salaries.
Scheme members still need to be medically underwritten by the Insurer, but there will usually be a ‘free cover limit’ up to which, members will be automatically covered without any underwriting.