Please note: This information relates to policies quoted after 28 September 2015.
These are some of the most frequently asked questions relating to our Group Income Protection policy. If you would like to discuss a potential claim, contact our claims team on 0800 142 2377.
Do I need to cover all of my employees?
You don’t have to cover everybody who works for you; you can choose to cover certain members of staff only (Directors only, for example). However it’s also important to understand the implications of the Equality Act 2010, which prevents employers from discriminating against employees, job seekers or trainees on grounds of age, sex, race, religion and disability (amongst others). You may however want to introduce a fixed probationary period for your employees, before they are eligible to receive Group Income Protection cover. Or you may decide to allow entry to your company’s scheme at certain points during the year, monthly or annually.
Does every employee have to be covered at the same level?
It depends on your structure. If you wanted to give different levels of cover you could group your employees into categories and then assign different benefit levels to each category. Directors or senior managers, for example, may be covered for a higher level of income, or have a shorter deferred period than other groups.
Are my employees based overseas covered?
In most cases we will cover employees who are based overseas, as long as they have a contract of employment with a UK based and registered company already covered by your policy.
Do we need to collect any medical evidence from our employees?
If your employees need to be medically underwritten, we’ll either use a medical declaration form, or ask them to take part in a tele-interview. More evidence may be needed, but employees are usually covered for their full benefit for a period of 90 days, while medical underwriting is being completed, although pre-existing conditions will be excluded.
Can I transfer a scheme from another provider?
Yes, providing there has been no break in cover, we’ll usually allow ‘No Worse Terms’ to apply. In these cases, employees will switch over automatically and will be given the same medical underwriting terms and levels of benefit as they had previously, with no more medical evidence being required (subject to the policy maximum).
What happens if we want to add employees to the scheme?
If you take out a unit rated policy, you’ll need to tell us about any new joiners or leavers at the policy anniversary date. If you have a single premium policy, you must let us know about all new joiners and leavers as soon as possible. For either unit rated or single premium policies you need to tell us immediately of any joiners whose benefits are above the free cover limit or who do not meet the normal eligibility conditions.
What happens when someone makes a claim?
Our aim is to make the claims process as easy and straightforward as possible. In the first instance we recommend that you phone us to let us know if one of your employees is absent from the work place. In order to gain the most benefit from our early intervention support, this should happen either within two months of the start of the absence or, in the case of a 13-week deferred period, within one month. You’ll have a dedicated team throughout, to help you and your employees, at what will inevitably be a difficult time, and because every case is different, we’ll talk them through the most appropriate course of action.
Can more than one claim be paid under the policy?
Your employees can make more than one claim as long as they have not received a lump sum payment (where this option is selected). We will not make any further payments until a further deferred period has been satisfied, unless it is a linked claim. Any limited payment term applies to incapacity from one illness or injury. So where incapacity is from the same cause, we’ll combine the periods of incapacity and the total will be limited to the payment term insured.
Will my premiums stay the same each year?
If the factors used to calculate your premium don’t change, then we can usually guarantee your premium for two years from the start of the policy. Any changes in membership will be allowed for by an end-of-year adjustment premium based on the membership at the end of each policy year.
How are the premiums taxed?
In most circumstances, Group Income Protection premiums count as a business expense so therefore qualify for corporation tax relief. Under current tax laws, Group Income Protection does not count as a P11D benefit in kind. This is based on our current understanding of tax rules and legislation and is subject to change.