Updated: February 28, 2020

Group Income Protection Insurance Costs

Want to know how much Group Income Protection costs? This guide will provide all the information you need

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Richard Angliss

Author: Richard Angliss - Finance Expert

Updated: February 28, 2020

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.

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
How long the deferred period is
Employee and company-specific factors

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.

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.

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

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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.

Ask a quick question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in group income insurance. Ask us a question and we'll get the best expert to help.

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Richard Angliss

Richard Angliss

Finance Expert

About the author

Richard Angliss has made a career in financial services which stretches over 40 years.

His early career was spent learning about the various financial products and applying them to prudent advice, working for one of the largest life assurance and investment firms. After that he joined the financial services arm of a very well-known firm providing independent advice to their 8 million customers.

For the last 20 years he has been involved in building software solutions that help Advisers and clients work together to achieve good financial outcomes and helping to set up three independent advisory firms. He also has written many articles for financial services publications and provided commentary for newspaper journalists.

At an early stage in his career he realised the great satisfaction that comes with being able to help people achieve their goals and protect their families. “Regulation of financial services has hugely impacted on ensuring people get appropriate advice. The issue these days is access to that advice and just as importantly regular reviews to make sure that everything stays on track”.

With the growing development of online resources such as Online Money Advisor he sees a great future for people to access advice to make their pension and investment work harder for them.  Plus, of course, to ensure they have insurance products in place that will be required when unforeseen events happen.

He knows getting that balance right is crucial to prudent financial planning and the wellbeing of individuals and their families.

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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