These are some of the more frequently asked questions we hear about Group Income Protection. But because your needs will reflect the individual nature of your business, we’re also happy to answer any other queries you may have. Call us on 0845 300 4452. We’re happy to help.
You don’t have to cover everybody who works for you, you can choose to cover some members of staff – Directors, for example – and not others. But it’s important to understand the implications of the Equality Act 2010. This makes it illegal to discriminate against employees, job seekers or trainees on grounds of age. However, you may 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.
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 staff.
We can consider covering employees who are resident overseas, as long as they have a contract of employment with a UK company covered by this policy.
If your employees need to be medically underwritten, we’ll either use a medical declaration form, or ask them to take part in a Teleinterview. 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, subject to any pre- existing conditions. Anyone joining the scheme will be subject to the scheme ‘Actively at Work’ criteria.
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 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).
If you take out a ‘unit rated’ policy, you’ll need to tell us about any new joiners or leavers at the scheme anniversary date. If you have a single premium policy, you must let us know immediately about any new joiners or leavers. We will need you to send us details immediately for any members whose benefits are above the free cover limit or who do not meet the normal eligibility conditions.
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 about the absence. This should happen either within two months of the start of the incapacity or, in the case of a 13-week deferred period, within one month. You’ll have a dedicated point of contact throughout, to help you and your employees at what will inevitably be a difficult time for them. Because every case is different, we’ll talk them through the most appropriate course of action.
Your employees can make more than one claim as long as they have not exhausted any limited payment term period or, if applicable, received a lump sum payment. 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.
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.
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.
Talk to us. We're happy to help. Call:
0845 300 4452
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