Group Income Protection: Why Your Employees Need It

Group income protection is a great way of looking after your employees' financial, mental and physical wellbeing if they're off work sick for a prolonged time. Here's why you should include it in your employee benefits package.

Yugi the Giraffe - 1 April 2022

Employees are the heart of your business, and each and every one of them has a personal life outside of the workplace that needs to be supported.

Being a responsible employer means caring about the wellbeing of your workforce and that of their loved ones.

Group income protection, also known as Sick Pay, is a fantastic way to make your people feel secure. It's a financial product that’s built to support employees if they’re unable to work for a long period of time due to illness or injury, providing a replacement income of up to 80% of their salary.

So what are the benefits of providing this type of protection for your employees? Let’s explore.

Why should you provide group income protection for your workforce?

1) It supports financial wellbeing

We tend to underestimate the impact that financial wellbeing can have on employee mental health. It's very hard to find peace of mind when you're concerned about money, which is why income protection insurance is such a highly valued employee benefit.

According to MetLife, 47% of people say that their biggest financial concern is if their primary wage earner could no longer work. Considering that 118.6 million working days are lost each year due to sickness or injury, this is quite rightly a serious concern for people - as being without income for an extended period of time can be devastating financially.

Group income protection can relieve this worry from your employees, as they’d know that no matter what happens with their health, they’ll still be getting a steady income that they can use to pay off their mortgage, cover bills or support their family.

2) It can shorten required sick leave

As part of a proactive approach to employee wellbeing, income protection policies will often come bundled in with extra rehabilitation support services such as EAPs and GP access, enabling employees to easily speak with medical professionals, clinically trained mental health experts and qualified counsellors.

Industry body, Group Risk Development (GRiD) found that there were more than 138,000 interactions with the additional help and support services funded by group income protection insurers in 2020.

These professionals can determine the best course of treatment for illness and maintain regular contact to ensure that an employee is receiving the care they need. Every interaction has the potential to prevent a more serious illness, or better yet, eliminate the need for an absence in the first place.

Early detection and prompt support can make a huge difference, but sometimes a person's condition means they are unable to work for a considerable amount of time. If an employee is unable to work for a prolonged period, income protection is an excellent way to ensure their financial, mental, and physical wellbeing throughout this difficult time.

3) It supports employee mental health

Traditionally, the main focus of businesses has been on the physical health of employees. But in recent years, particularly following the pandemic, businesses have been forced to take a fresh look at how they treat their staff, with many top employers now placing mental health much higher on the priority list.

Mental health is one of the most common causes of workplace absenteeism, and in 2020, Deloitte analysis found that poor mental health is costing UK employers up to £45 billion a year.

This is why many employers are now taking advantage of group income protection insurance. While life and critical illness cover don’t cover mental health, income protection cover makes no distinction between physical or mental illness – and in 2020, mental health was the second most common reason for a claim.

Additionally, group income protection products are not underwritten, so all employees can benefit regardless of their medical history.

Over the past few years, loss of income insurance has played a vital role in putting mental health on a par with physical health on the workplace agenda, while making a valuable contribution to employees' overall wellbeing that has resulted in reduced absenteeism.

If you are looking to provide group income protection for your employees, YuLife is here to help. Our group risk benefits provide essential financial protection to employees and their families when they need it most.

YuLife is the first digital insurance provider to offer long-term financial protection for employees and engage with them by rewarding healthy lifestyle changes via our gamified app. This is supported by an extensive package of preventative health benefits that protect the wellbeing of employees.

Click here to get a quote and learn more about how YuLife is working with hundreds of businesses to provide workplace benefits that engage, reward and protect their people.

Yugi the Giraffe

Yugi is our YuLife mascot. Like all giraffes they've got a big heart – in fact the biggest heart of all land animals.