Group Income Protection Insurance Costs

Group income protection helps employers manage the associated costs of employee sickness. It’s an insurance that provides financial benefits and rehabilitation support for employees who have to leave work for a prolonged period due to long-term illness or injury.

It can help to reduce the financial strain on organisations and help employees reduce the length of their sickness absence. It’s one of the insurance products that many businesses can’t do without.

In this article, we’ll discuss group income protection costs and how to find the best quotes.

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How much does group income protection cost?

The cost of group income protection varies depending on the scheme level of cover you require as well as factors specific to your company and employees. Benefits paid out are usually based on a percentage of employees’ salaries and businesses can opt for the specific budget payout and policy they need.

Specific terms of your policy will impact the costs of your premiums, including:

How long the cover will pay out for

When you take out group income protection, you can select your plan limit – the length of time that your policy will pay out for.

Some providers will offer a policy with a two year limit, while others offer five years, or even an indefinite payout. But bear in mind that the cost of your group income protection cover will likely increase for longer payout terms.

How long the deferred period is

The deferred period is the length of time the employee is off sick before the policy kicks in. Most insurers set a fixed deferred period of 13 weeks, but this is negotiable and can be shortened at a higher premium cost.

Employee and company-specific factors

These often include…

  • The age and gender of employees
  • The risk level of the occupation
  • The total sum of the salaries you are insuring
  • The location of your employees and whether they travel overseas to high risk regions

Group income protection free cover limit

The group income protection free cover limit is the cover that each scheme member is entitled to receive before they have medical evidence to support their payout claim.

This limit is usually calculated as a set amount of cover multiplied by the number of employees covered in the scheme. Once the claim for payout goes over the limit, the insurer will request medical documents to determine whether the claim is covered under the standard terms of the agreed policy.


What are income protection payments?

Group income protection aims to provide an income to an employee while they are unable to work for a prolonged period as a result of an illness or injury. The payment can continue until the employee returns to work otherwise, depending on the options chosen, when they reach their state pension age.


Group income protection quotes

It’s hard to find group income protection quotes through an online search because it’s a complex form of insurance and there are many different factors that impact pricing. Each provider has their own set of policy terms, and you’d need relevant data from each employee before you can get an exact quote.

That’s why the best route to getting a group income protection quote is speaking to an expert financial advisor. An advisor with insurance expertise will have links to insurance deals across the entire market and can point you directly to the most appropriate policy for your company needs.

Our advisers are regulated by The Financial Conduct Authority and so you will be dealing with a highly trained person that adheres to strict rules of conduct.


What are escalation rates?

Group income protection escalation rate is a policy term in which states that the rate of the premium payout will increase after a set period of time, in many cases, this is a one year period.


Speak to an expert advisor!

A financial advisor can help you secure access to the most suitable group income protection deals at the best possible price. The insurance experts we work with can offer completely independent, impartial advice to make sure you secure access to the most suitable group income protection cost policy for your business.

A financial advisor can take you directly to your best offer and use their inside knowledge of the industry to bargain on your behalf and negotiate more favourable premiums for you than what you’d get if you went directly to a provider.

We don’t charge a fee for our service of connecting you to an advisor with insurance expertise. Make an enquiry or give us a call on 0808 189 0463.

We'll match you with your perfect financial advisor

Save time and money with an expert who specialises in cases like yours

We'll match you with your perfect financial advisor

Save time & money with an expert who specialises in cases like yours.

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