You’d be forgiven for assuming that income protection is a benefit people need later in life when age-related illnesses and conditions become more common. However, this really is a benefit which should also be valued by younger members of your workforce. More and more people in their 30s are making claims for Income Protection benefits. Cover protects your employees if they are unable to work due to a physical condition but benefit will also be paid for employees who suffer with mental health conditions. Mental health is the second most common cause of income protection claims which may go some way to help explain the increase in claims for those in their 30s.
Lifestyle events also often prompt people to think about what cover and protection they have in place. Examples of events which may result in somebody valuing benefits like income protection would be buying a property, having a child or getting married.
Buying a property: When purchasing a property, it is of utmost importance for somebody to protect their home and the ability to make monthly mortgage payments, in the event of being unable to work. Income protection cover provides a replacement monthly income if your employee is unable to work because of long-term illness or injury.
Income protection should by no means be classed as a ‘sick pay’ policy. In addition to the financial benefits, the majority of income protection providers promote early intervention services and rehabilitation support services. This may include access to counselling or physiotherapy to help employees recover and return to work if appropriate.
It’s not only house buyers who need protection. If you’re renting and unable to work through illness or injury, bills still need to be paid if a tenant wants to remain in their property.
Having a child: Starting a family, or extending an existing one, is a very exciting time. However, this means your employees will have dependants relying on their income for them to be looked after. What would happen if an employee’s life was turned upside down by illness or injury? Income protection can help to provide financial support for those affected by illness or injury.
Getting married: Marriage is another event which can urge employees to consider income protection cover. Consider when partners are dependent on each other for splitting financial commitments such as mortgage payments. If one were to be hit by unexpected illness or injury, having protection in place could mean the difference between keeping their home or having to sell up and move.
Your younger staff may not fully recognise the benefit of employee protection benefits until they reach some of these milestones in their lives.
What should companies do to help all employees recognise the full benefit of a group Income Protection scheme?
- Identify all additional benefits: Most income protection schemes will include additional ancillary benefits which are included free of charge. These may include an Employee Assistance Programme and Early Intervention and Rehabilitation services.
- Promote these benefits to your staff: Regularly remind your staff of the additional benefits they have access to. Counselling services are available through an Employee Assistance Programme and promotion of these services is key to driving engagement
- Review your employee benefits package: If you don’t have cover in place already, introducing policies such as income protection will provide your employees with vital support when they need it the most
We can carry out a free no obligation review of your employee benefits package. If you would like to find out more, please do not hesitate to get in touch with your usual contact or at:
T: 01883 332260