Investing in group income protection can provide both employers and employees with a range of benefits. In this article, you can find out more about what group income protection is, how it works and how it can benefit your business.
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What is group income protection?
Group income protection is an insurance policy that businesses can take out on behalf of employees. In the event of an employee missing work due to illness or injury, group income protection will ensure that said employee is still getting the financial support they need, offering them peace of mind before they return to the workplace.
How does group income protection work?
If an employee is unable to work due to illness or injury, a group income protection policy ensures that they are still getting financial support. This policy pays out a proportioned amount of the employee’s monthly salary while they are off work. The policy is paid for by the company, so the employee does not have to pay anything.
How group income protection can benefit your business
By taking out a group income protection policy, you’re ensuring that your employees will get all the support they need when recovering from their illness or injury. Not only does your employee get financial peace of mind for themselves and their loved ones, they also get access to 24/7 support to help with their physical and mental wellbeing. By investing in group income protection, you can significantly improve the wellbeing of your workforce and ensure any worker who is off work for an extended period of time will be fully ready to return to the workplace when the time comes. With employee wellbeing becoming an increasingly important part of many businesses in a post-COVID-19 world, offering a group income protection policy is a great way of showing your staff that you care about their health and wellbeing, which will help with retaining your current workforce and could also give you an edge when it comes to recruiting new talent.
While group income protection gives unwell employees financial support, it can also be financially beneficial for the business to take out a policy. Without group income protection, supporting an employee who is unable to work would involve eating into the company’s own finances. If an employee is unable to work over a long period, supporting them could prove very costly for your business. A group income protection policy can prove to be very cost-effective for your business: After purchasing the policy, you will receive a payment every month which you will then pass on to the employee. So, a group income protection policy will prevent your business having to pay for your employee out of your own pocket, reducing the financial impact of illness and injury on your business.
Finally, a group income protection policy will cover your entire workforce, no matter how many employees you have. After taking out the policy, you can rest easy knowing you and your business will be prepared to care for a worker should they become unwell.
Taking out a group income protection policy can be a great way to protect your employees and your business in the event of illness or injury.