Group Income Protection insurance can often get overlooked and brushed aside in favour of more immediate perks, or it can get misunderstood entirely. Yet, this type of cover can be a lifeline, providing essential financial support if an employee is unable to work due to illness or injury.
Despite its clear value, employers frequently encounter a number of common objections, from concerns about cost to uncertainty around perceived complexity. But many of these worries and common objections can be answered and overcome.
In this article, we’ll remind you of what Group Income Protection insurance is, and then tackle some of the most common objections head-on, shining a light on why Group Income Protection insurance is not only a smart investment for businesses but also a powerful statement of care and commitment to your team.
What is Group Income Protection Insurance?
Group Income Protection is a policy that regularly pays employees a percentage of their salary in the case where they can’t work due to illness or injury. This is up until they can return to work, or until the plan benefit term expires or even until retirement.
The main type of Group Income Protection insurance is employer funded, meaning it is decided and funded by the business. This means that it’s the employer’s responsibility to pay the premiums, but they are also able to choose the level of coverage they want to provide, as well as how quickly it starts.
“It’s too expensive”
Group Income Protection insurance may seem like a luxury at first glance, especially for organisations working to tight budgets. But when you consider the bigger picture, the cost of income protection insurance can be outweighed by the value it brings. Not only can it reduce the financial strain of long term sick pay on your business, but it can also support employee wellbeing and retention. When it comes to income protection insurance, there are often scalable options so even smaller organisations can tailor cover to suit their needs and budget.
“We already offer statutory sick pay”
Statutory sick pay (SSP) is the legal minimum, and for most employees, it’s not enough to live on. It only provides up to £118.75 per week, and for a maximum of 28 weeks. Group Income Protection insurance on the other hand, can provide a much higher percentage of an employee’s salary, and for longer. It gives real financial support during prolonged absence, helping staff focus on recovery rather than worrying about bills.
“Our team are young and healthy, they won’t need it”
This is a common objection as it is easy to assume that younger workforces are less likely to experience illness or injury, but illness can strike anyone at any age and life is unpredictable. Offering income protection insurance sends a strong message that you’re a forward thinking employer who looks after all staff, regardless of age or perceived risk.
“Those policies never pay out”
It might be a misconception to think that insurance companies will try to stray away from paying, but that is not the reality. In 2024, we paid 99.25% of all claims. As well as this, 97.42% of all claims were paid in 2022-2024 inclusive. These figures speak for themselves!
“It sounds complicated to set up and manage”
One of the most common objections is that Group Income Protection insurance sounds complicated, especially for HR teams juggling multiple priorities. But most insurers and brokers are well-versed in making the process simple. From setup through claims management, support is available every step of the way.
“We’re already offering private health insurance”
Private health cover and Group Income Protection insurance serve different purposes. Private health insurance helps people get better, providing access to treatment, while income protection insurance provides financial stability during recovery from an illness or injury. The two actually complement each other, offering a better approach to employee wellbeing. Together, private health insurance and Group Income protection insurance provide both physical and financial support.
“Group Income Protection Insurance isn’t for small businesses"
Group Income Protection Insurance is not only affordable for large organisations. Providers offer policies that can take account of the needs of small businesses, selecting shorter benefit payment terms for example to keep the costs down.
How Wiltshire Friendly can help
Here at Wiltshire Friendly, we specialise in income protection insurance, offering cover for individuals and employers who become unable to work due to illness or injury.
Our Group Income Protection plans offer flexibility with various features and cost options tailored to your business and employee needs. Get in contact with us today to make a group claim or discuss how we can help you.