When it comes to providing employee benefits insurance to your team, approaching it from a holistic point of view is essential. This means making diverse policies available. When you do that, it not only shows that you care about your employees, but also gives your company a competitive edge when attracting top talent.Group insurance is a particularly important employee benefit, although there are some nuances between types of policies like group life insurance and income protection. So what are the differences between life insurance vs income protection? And do you need to provide your team with both? Let’s find out. First, we’re going to look at the main differences between the two types of cover: Life Insurance vs Income Protection: what’s the main difference? While both life insurance and income protection provide financial support to an employee’s loved ones in the event of them experiencing an unexpected illness or injury, they are different for 2 reasons:They are deployed under different circumstances They are paid out differently. The key difference between the two is that Life Insurance pays out a lump sum in the event of an employee’s death, while Income Protection (or disability insurance) pays a percentage of an employee's salary while they recover from an illness or injury. Here’s an overview of each policy’s details: Details on Income ProtectionGroup Income protection pays out a portion of an employee’s salary tax-free on a monthly basis. This helps to keep their finances in check when they can’t work due to injury or illness. It can also be referred to as “sick pay insurance” or “permanent health insurance,” which is different from our group health insurance cover. Group Income protection also gives affected employees support and resources to help them rehabilitate and get back to work quicker. This type of coverage can also last through to retirement but doesn’t cover previous health conditions. The amount paid out can vary from 50% to 80% of an employee's original monthly earnings. However, do note that as inflation escalates each year, the percentage remains the same and the pay-out increases proportionately. This way, the benefit won’t be eroded over the years that an employee remains incapacitated. Negotiated changes to salary aren't included in this.If your employees are struggling at work due to illness, encourage them to speak to your insurer as early as possible about their group income protection benefit. Once considered and approved, the payment often takes around four weeks of being unable to work before it kicks in.Details on Group Life Insurance There are various types of employee life insurance out there, but at YuLife, we focus on offering high-quality Group Life Insurance for your team. Group Life insurance works by paying out a lump sum of money to your family or next of kin – or whoever is deemed an employee’s beneficiary – in the event of the employee's death.The total of this lump sum is typically a multiple of the employee's salary, but it is ultimately decided by you or the decision-maker at your organisation once they are hired, or after a designated period of time after employment. This employee benefit is also typically tax-free, provided it is not more than your available lifetime tax-free allowance, which was £1.8 million in 2012-13. However, employers and employees are always encouraged to ensure any provision meets their needs.When the employee passes, it can usually be verified electronically, and there’s no need for the family to share death certificates.Can your employees have income protection without life insurance, and vice versa?Which one should you choose: life insurance vs income protection? As it turns out, many employers will opt to provide both of these types of cover together in an employee benefits package because (as you can probably tell from this article) they do extremely different things. However, it is not necessary to possess one in order to have the other. Workplace insurance is very cost-effective, particularly against the rising cost of absence, and it’s very commonly found in workplaces across the UK in particular. Because it covers rehabilitation services, it also helps employees return to work quicker, and support a sustainable return after a period of ill health. Offering a mix of benefits from life insurance to income protection makes it even more likely for people to join your organisation, because it offers a great sense of feeling valued at a workplace – as well as peace of mind in these generally uncertain times. In fact, 2.78 million employees are covered for group income protection according to Swiss Re Group Watch 2021. It’s a great investment, as both employer and employee benefit from a variety of wellness services that are often offered in conjunction with these to support everyday needs such as a virtual GP, counselling, financial wellbeing services and training to prevent health issues from arising. What are YuLife’s group life insurance and income protection options?In terms of Life Insurance, we offer a Group Life Insurance product for your whole team, which comes with a suite of benefits in a gamified app. This includes an extensive Employee Assistance Program, access to wellness resources, the ability to participate in health and wellness challenges to redeem rewards for your favourite brands, and more.We also offer Group Income Protection that comes along with the same suite of benefits to help you live your best life, prevent any unwanted accidents or premature death – and maintain a healthy recovery should you become injured and unable to work. You also have the option to bundle several of these covers into one. If you want to learn more about YuLife’s insurance offerings, reach out to the team for a free, personalised quote. When it comes down to life insurance vs income protection, there is no one right answer for your workplace. Both group life insurance and group income protection are vital in financially supporting and protecting your team, and they work incredibly well together to cover all the bases. Not only is this an attractive benefit for people joining your team, but it makes your staff feel valued and appreciated – and more likely to stick around. If you’re ready to start amping up your workplace wellness and insurance offerings, reach out to the incredible YuCrew to learn more.