What is Group Income Protection Insurance(GIPI)?
Aug 13
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. In some cases, income protection insurance is claimed by the employee with the help of insurance services similar to Curo Financial as a way of protecting their salary, especially if the company doesn’t provide such protection.
Why Companies Should Consider Group Income Protection
The Confederation of Commerce Industry has found out that absence from work due to sickness of employees costs business approximately 13.2 billion every year.
In the year 2007, absenteeism and sick leave cost 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
Through a Group income protection Insurance Purchase, companies can enjoy numerous benefits like fostering positive outcomes for both employers and employees. Another significant advantage is the enhancement of the relationship between the employer and their workforce. When employees perceive that their company genuinely cares for their well-being by providing financial support during difficult times, it strengthens the bond between the two parties. This mutual appreciation can lead to a more engaged and loyal workforce. The pension scheme contributions of the company and the NI contributions of the employer can be included too. The 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 necessary getting the company’s continuous reassurance and support insurers rehabilitation scheme. Exclusion from tax penalties. Employee benefits are a must in any organization, it can help with the work environment and provide a better output for the employees and employers. To learn more about these types of benefits, professionals can go here to see what they can add to their business schemes.
Product Futures:
Group Income Protection can be developed 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.