{"id":25973,"date":"2012-09-03T11:45:43","date_gmt":"2012-09-03T10:45:43","guid":{"rendered":"https:\/\/www.wingatebs.com\/group-risk-bulletin-september-2012\/"},"modified":"2012-09-03T11:45:43","modified_gmt":"2012-09-03T10:45:43","slug":"group-risk-bulletin-september-2012","status":"publish","type":"post","link":"https:\/\/www.wingatebs.com\/group-risk-bulletin-september-2012\/","title":{"rendered":"Group Risk Bulletin – September 2012"},"content":{"rendered":"

We were recently approached to provide a 250 word editorial piece on Group Income Protection insurance for Cover magazine.\u00a0 \u2018Cover\u2019 is a protection insurance publication which provides authoritative and credible information, which is of practical use, and comprehensively covers all aspects of the protection and health insurance market with insightful analysis, news, features and regular supplements.<\/p>\n

The 250 word article which can be found in the next edition of \u2018Cover\u2019 was prepared by our Corporate Benefits Adviser, Paul Hyland. A slightly longer, comprehensive version can be found below:<\/p>\n

\u2018Income Protection (often referred to as PHI \u2013 Permanent Health Insurance) is an employee benefit which is supported by an insurance policy that pays a regular weekly or monthly income if an employee becomes unable to work due to illness or injury.<\/em><\/p>\n

This is a valuable benefit as it protects the employee against loss of earnings should they become sick or have an accident, and meets an important need for all earners to protect their income against unforeseen events that could have a significant financial impact.<\/em><\/p>\n

Up to 75% of earnings can be covered under the policy \u2013 insurers do not provide cover beyond this level as there is a danger it will remove any incentive to return to work, which is not in the interests of either the employer or insurance company. \u00a0The benefit payments usually begin after a \u2018deferred period\u2019 of 3 or 6 months continuous absence and will continue to be paid until the insured person ceases to be employed, reaches retirement, returns to work, or if preferred, after a fixed period of, say 5 years.<\/em><\/p>\n

The employer and\/or employee pension contributions can be covered by the policy as can the employers NI contributions.\u00a0 This means the vast majority of the employer\u2019s costs are covered and if an employee is unable to return to work, as well as receiving a proportion of their lost earnings from the policy, the contract will continue to make contributions to their retirement fund.<\/em><\/p>\n

Once in payment the level of benefit can be set to escalate at a fixed rate or in line with an index such as RPI. <\/em><\/p>\n

Research from Met Life in 2012 revealed that 21% of people have suffered long term ill health during their working life.\u00a0 Given the risk of incapacity, Income Protection is a highly valued employee benefit and acts an important element in staff retention and attraction.\u2019<\/em><\/p>\n

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