Top tips for getting the most from an income protection benefit
Group income protection (GIP) is an insurance contract which, after a waiting period, provides employees with a monthly income if they are unable to work due to illness or injury.
It is increasingly a valuable tool for employers looking to protect employees’ financial security and the early intervention support now commonly available from all insurers helps reduce occurrences of long-term absence from the workplace.
But what should employers consider when it comes to ensuring they get the most from a GIP policy? Here are our top tips.
Ensure the policy meet your needs
There is no one-size-fits-all policy, so it’s important to choose one that is right for your business and employees. You need to think about the level of cover; how long the benefit is going to be paid for and, in the current financial climate, the premium.
Notwithstanding any contractual requirements around your sickness and absence policy, think hard about whether you really can afford to offer the maximum level of cover, considering this can last from date of acceptance to when a person reaches the policy cease age (70 years old is the maximum normally available).
For context, this is normally 75% of scheme earnings, plus any top up benefits such as pension and national insurance contributions.
A benefits advisor will be able to help guide you to ensure you are providing the most appropriate and cost-effective cover.
Absence management and early intervention
A GIP policy should be integrated with internal absence management processes and procedures and/or occupational health services. GIP is not just there to pay all valid claims. Insurers want to work with employers to provide early intervention support to employees, often from the first day of absence and before a claim is submitted.
With support from an insurer, employee absence can be significantly reduced, leading to:
- Employees returning to work earlier
- Fewer claims
- More positive health outcomes
- Better control of future premiums
Support can also significantly reduce the need for unnecessary additional spending on occupational health services or private medical insurance.
Communicate the benefit to your employees
It is important to make sure your employees are aware of the benefits and value of having GIP cover. Tell them what they can expect should they be unable to work through illness or injury, while also making it clear that it’s not all about claims.
Highlight value-added services that invariably accompany a policy, for example, access to an employee assistance programme, legal information service, second medical opinion, virtual GP, or wellbeing content. By promoting these services you’ll be helping to make sure your employees are physically, financially and mentally supported at no additional cost to you.
Support employees who are claiming
It can be easy to forget to continue to communicate with employees who are absent for medical reasons. This lack of information can leave an ill or injured employee with a level of uncertainty and asking, ‘what happens next?’
It is important to provide them with support. This could include simply providing information about the claims process, helping them with accessing early intervention or rehabilitation services, or simply being there to offer emotional support.
Create a supportive work environment
Not all claims will run to the policy cease date and, these days, GIP providers are willing to try to facilitate an early return to work if possible. An employee who is returning to work after a long-term absence may need extra support and reduced hours to start with.
In such cases a phased return plan may be formulated and the benefit payable by the insurer would be altered accordingly so that the individual isn’t penalised for trying to come back to work.
Promote a healthy workplace
Encourage employees to take care of their health. Employees who do are less likely to become ill or injured and less likely to need to make a GIP claim.
There are many things that employers can do to encourage a healthy workplace. This could include providing employees with access to healthy food and drink, encouraging them to take regular breaks and providing opportunities to exercise.
Alongside these more obvious aids to supporting your workforce, consider what wellbeing support comes as part of your GIP insurer’s value-added benefit proposition. There is increasingly a wealth of wellbeing content available, including webinars, podcasts, exercise programmes and even shopping discounts.
Supplied by REBA Associate Member, Barnett Waddingham
Barnett Waddingham is proud to be a leading independent UK professional services consultancy at the forefront of risk, pensions, investment, and insurance. We work to deliver on our promise to ensure the highest levels of trust, integrity and quality through our purpose and behaviours.
