How does group income protection work?

We’ve summarised the key things you need to know:

• All eligibility rules have to be agreed with the provider.
• Around 50% to 75% of an employee’s salary can be covered.
• There will be a deferred period between an employee being off work and payments starting.
• Payments can be made monthly or sometimes as a lump sum, depending on the policy.
• Most providers offer rehabilitation support to help employees return to work.

It's worth remembering that benefits like rehabilitation support tend to be non contractual, which means they can change or be removed at any time.

Group income protection is only available through a financial adviser. So, you must get financial advice before taking out the policy. If you don't already have an adviser, you can find one through MoneyHelper.

You’re responsible for choosing a provider and defining the terms of the policy. It can seem daunting when you’re looking for the right provider. Compare their financial strength, claims processes and added value services – such as wellbeing – for a well-rounded picture. 

You'll decide who to cover, how much for and for how long.

You’ll need to let your employees know you’re offering group income protection and how this will add to their benefits package. And with any benefit you provide, you must make sure it’s compliant with employment law and insurance regulations. 

How employees make a claim for group income protection depends on the provider. At Aviva, we’re proud of our simple and supportive claims process. Every employee gets:

• a dedicated case manager throughout their claim journey 
• on time payment, usually before the end of the deferred period 
• ongoing support for them, their line manager, HR or occupational health rep
• expertise from our in-house rehabilitation team and external clinical specialists 
• help planning their return to work, when it’s right for them.

Benefits paid to an employee through an employer are paid via PAYE. Payments made to individuals (Equity Partners) are taxed via a self assessment return.

Reducing your long-term absence costs, both financially and operationally, is the main benefit of offering group income protection insurance. At Aviva, we know how important it is to support your employees even before they need to take time off work. With our Group Income Protection, we offer early intervention and rehabilitation support as added value services. These are non-contractual benefits that can be changed or withdrawn at any time.

Group income protection can also help you create a healthier, happier workforce. Many providers offer a range of wellbeing services - helping employers to attract and retain the best talent, giving you a competitive edge when it comes to recruitment.