What is Group Income Protection Insurance(GIPI)?

Aug 13

What is Group Income Protection Insurance(GIPI)?

Group Income Protection is in charge of paying a percentage of employee’s salary if he or she is absent from work for a long period of time due to illness or accident. Having Group Protection Income enables both the employer and the employee to operate harmoniously even during hard times.


Why Companies Should Consider Group Income Protection
The Confederation of British Industry has found out that absence from work due to sickness of employees costs UK business approximately £13.2 billion every year.
In the year 2007, absenteeism and sick leave cost UK business industry:£13.2 billion*172 million labouring days*Averagely, 6.7 ill days per every employee*
*Source: 2008 survey of labour turnover and absence from CBI/AXA, Confederation of British Industry

Such statistics signify that sickness as well as absenteeism can create a very negative impact on the financial resources of a company. Group Income Protection plays a very important role is assisting the employer to deal with long-term illness in a very effectual manner. Most importantly, it also enables the employees to feel that they are being supported by their employer during their trying moments.

Usually, companies will continue paying their employees even during a sickness period, but this is not mandatory. At times, the employer is forced to stop paying the employee due to one reason or the other, which can be very unfortunate, especially if the employee has been a very committed staff member for a long period of time and has contributed positively to the company’s success. This ends up damaging the good relationship that once existed between the employee and the employer. However, Group Income Protection prevents such an instance from taking place.

Beneficiaries of Group Income Protection

A company that offers the policy benefits through various ways such as:Improved relationship between the employer and that employees as they appreciate each other’s supportThe company can be able to offer financial assistance to the employees at a very sensible costThe company can be capable of managing the cost of absenteeism and sickness more efficientlyThe policy premiums are contributed without being taxedThe pension scheme contributions of the company and the NI contributions of the employer can be included tooThe company can gain from the rehabilitation schemes of the policy provider
The employee benefits through various ways such as:Continuous payment of sick pay when necessaryGetting the company’s continuous reassurance and supportInsurer’s rehabilitation schemeExclusion from tax penalties
Product Futures:

Group Income Protection can be developped with a delayed period of 13 weeks, 26 weeks, 28 weeks, 41 weeks 52 weeks and 104 weeks. The premium is lower when the delaying period is longer. Usually, providing cost of Group Income Protection ranges between 0.5% and 1.5% of payroll. It however depends mainly on the business type. It is very cheap to insure white collar employees. The policy can be set up flexibly in that NI contributions, Pension contributions, salary limitations and indexation can be included. The administration set up offered by most policies is minimal the ones who majorly require medical underwriting are higher earners only.

How We Can Help You

As compared to other insurances, Group Income Protection offers negotiable terms and premiums. After holding our first meetings or discussions, we then contact various insurance who we feel that can provide you with the most suitable policy that you require. We then go through a negotiation process with these insurers in order to get the best possible terms and premium for you. After the policy has begun, we get to review your arrangements every year so as to find out if there are better terms that can be available for you. Due to the fact that Group Income Protection is more flexible and offers coverage to a lot of people within your organization, it is very vital that we relate well with each other and inform one another of the changes that may come about like the addition of members of staff.