Group life assurance and income protection

Group life assurance (GLA)

Group Life cover is a type of Life Insurance in which a single contract covers an entire group of people. Typically, these policies are owned and provided to staff by their employers.

In most cases, Group Life cover equates to far less than a member would have to pay for a similar amount individual protection and can help to provide your employees a sense of comfort to know that their loved ones would be looked after in the event of their death.

The majority of available providers can offer cover up to the age of 75 and benefits can be paid as a multiple of salary or even as a defined lump sum. You can even set multiple categories within a scheme enabling you to offer various levels of cover dependent on the members position within the company or even the length of service they have under their belts.

Many policies can even come with a free Bereavement Counselling service offering a mixture of telephone and face to face support for employees and their families as well as Legal support with regards to Probate.


Group income protection (GIP)

As with Group Life cover, Group Income Protection is a type of Insurance in which a single contract covers an entire group of people. GIP is often offered by employers as a way to attract employees but can often have a very positive impact for the employer.

GIP provides a replacement income if an employee is absent and unable to work due to sickness or injury. More often than not the insurance will start to pay a claim after the employer has ceased to pay the members wages and the insurer has assessed all relevant medical information (most commonly after a period of 13, 26 or 52 weeks).

These policies can also be set up to cover both pension contributions and national insurance contributions for employees and the employer to meet NI liability.

Different levels of cover are available and benefit commonly based on a percentage of the members salary less any state benefits they may receive.

The cost of absence to any business can have an impact but this impact can be particularly devastating to smaller businesses. The overall cost of funding an employee’s long-term absence including sick pay, national insurance, pension contributions, temp workers and loss of productivity can all have an impact on the overall running of your business.

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