Income Protection

Income Protection, also known as Permanent Health Insurance (PHI), provides an income when an employee is unable to work due to illness or injury. The benefit is payable after a specified waiting period known as the deferment period. Payments continue until the employee is able to return to work or reaches the retirement age of the scheme, or another selected timescale. Once a claim has qualified, the insurance company will pay the employer an agreed percentage of salary. This is received by the employee via payroll. It may be possible to pay the claim directly to the employee, thereby saving National Insurance contributions. This depends upon the way in which the scheme was set up.

In setting up a new scheme, or when reviewing an existing scheme you might want to consider:

• Who you are protecting
• The deferment period (period prior to claim)
• How long the income will be protected for and for whom. (This can vary for different groups.)
• Your budget
• Your operating system for employees
• Payment increases whilst in claim

Whether you have an existing scheme or are considering implementing a new scheme, we will work with you to help design the most suitable package to meet the needs of you and your staff. If you already operate an Income Protection/PHI scheme, we will show you how best to tailor it.

Once implemented, our Employee Benefits Administration Services will help maintain your scheme, scheme membership and claims management in the most effective and cost-efficient manner.

If you would like to enquire further, please complete the enquiry form or contact us and one of the team will be happy to talk you through the options available to you.

What would happen if your employees suffered an illness or injury that prevented them from working for a long time?

Income Protection or PHI is designed to replace a percentage of that income following a short waiting period. The scheme is normally set up so Income Protection starts just as your employees stop being eligible for sick pay from you.

How much of your employees earnings go on essentials, such as bills, food, transport?

For most people this is up to 75% of their salary. This is the sum they should aim to cover with Income Protection. If your employees would like to know exactly how much they should need one of the the team will be happy to help them.

Income Protection can be offered as part of your Core Benefits, Flexible Benefits Scheme or as part of a Voluntary Package where your employees can enjoy the plan at reduced rates.

Income Protection can be provided for all employees or reserved for chosen roles or seniority. It can help attract and retain your employees.