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Group Income Protection

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Group Income Protection covers an employee's pay if they're unable to work as a result of a long-term illness or injury.


Common features of Group Income Protection
Employee benefit
  • Cover starts after deferred period set in the policy
  • Income for a defined period up to normal retirement date, or return to work
  • Maximum benefit of 75% of insured scheme salary (less SSP)
Employer benefit
  • Return to work advice and counselling services shorten absences
Corporation taxation
  • Full corporation tax deduction for company
Employee taxation
  • Not a taxable benefit in kind;
  • The income benefit is subject to taxation and national insurance
Free cover limits
  • Pre-existing conditions may be excluded
  • Medical application and underwriting not required within free cover limits
  • Thus cover can be provided for individuals who may find it difficult to buy on an individual basis
Premium rates
  • The premium cost per employee will normally be well below the individual cost of providing the same benefit from taxed income

The benefits don't simply extend to the employee, however. A group income protection scheme can help speed up the return to work of long-term absentees, while insuring against the cost of long-term sick pay.

Because the cost of income protection can vary so widely, and as there are so many variables to consider when choosing a plan, it pays to have an expert such as Aspira alongside you. Our research shows that many employers are over-insured in this area, meaning the right advice could help them save money.