7 Reasons Why You Should Get Income Protection for Your Employees
If you want an employee benefit that will protect your people from their top financial concern, you should consider Group Income Protection.
Yugi the Giraffe - 31 October 2019
Financial benefits are always popular with employees - after all, their job is their main source of income and financial stability, so anything that adds to it is appreciated. However, despite being an amazing benefit your team will highly value, it seems as though Income Protection lies low on the list of priorities many businesses put forward.
What is Income Protection?
Group Income Protection, also known as Sick Pay, is 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. Employers choose a percentage of the original salary to be covered (with YuLife, you can get up to 80%), which will be paid monthly (similar to wages) after the selected period of time when cover starts. Many employers choose 6 months, as this is when statutory sick pay ends in the UK, but other options are available.
As well as the payout starting time, employers need to choose the length of time that the benefit will be paid, which can be a specific set amount of years or all the way to the State Pension Age!
After we’ve got all the technical details out of the way, it’s time to consider whether Income Protection is the right choice for your business. So what are the benefits of Group Income Protection? Let’s explore.
1. Group Income Protection comes with a bunch of extra benefits
Together with the policy from YuLife, employees will get access to an Employee Assistance Programme (EAP) and vocational rehabilitation, to help them get better quicker and as a result, get back to work as soon as possible. Not only does it mean that your employees’ health will be better as a result of preventative measures, but that they’re also going to be able to get back to work sooner.
More and more insurance companies are adding even more important health benefits into their Income Protection offering. For example, if you purchase Group Income Protection through YuLife, your employees will also get the YuLife app, which supports their wellbeing every day, creating meaningful behavioural change.
Through the app, employees earn YuCoin, the wellbeing currency, for healthy activities such as walking and meditating. They can then exchange their YuCoin for Avios air miles and gift cards from brands like Amazon, ASOS and so many more. This can help counter some illnesses before they even start!
2. Group Income Protection supports financial wellbeing
Financial wellbeing is a trendy topic at the moment, and rightfully so. Companies realise that financial stability is a major element in their employees’ health and wellbeing, and that they need to do anything they can to support them in that area.
According to MetLife, 47% of people say that their top financial concern was if the main wage earner in their family could no longer work. Considering that each year, one million people in the UK find themselves unable to work due to a serious illness or injury, this is a major concern for people - and they’re not wrong: loss of 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, they’ll still be getting a steady income that they can use to pay rent, pay off their mortgage, or support their family.
3. Group Income Protection helps attract and retain the best talent
Because loss of income is such a major concern for people, knowing that you offer this benefit is a huge deal for many employees and prospective employees. But that’s not the only reason why Group Income Protection, specifically, can help with retention.
Group Income Protection is perceived as a core benefit by most corporates today. This means that as a start-up or an SME, if you want to attract talent away from large corporates into your amazing company, they’d be expecting certain things like life insurance and income protection.
4. Group Income Protection can shorten their required sick leave
Thanks to Group Income Protection, employees get vocational rehabilitation support from the moment they get sick. This can curb the amount of time they spend out of work, and get them back to you, safe and sound, much quicker than without this support.
This is incredibly valuable to employees, who don’t accumulate more financial issues whilst being off from work, but also to employers, who get their trusted employees back as speedily as possible, shaving off the financial cost for the business.
We also know that financial distress affects mental and physical wellbeing: people with long-term financial issues suffer psychological and physical consequences. By receiving Income Protection from their employer, your employees would have the peace of mind required for a speedy recovery.
5. Group Income Protection creates a culture of caring
Many employers nowadays treat their employees as family. This is particularly true when it comes to SMEs. We know that employees who feel appreciated and respected are more engaged and more productive, and employers realise that if their prized business is important to them, then there’s no reason why the wellbeing and happiness of their employees wouldn’t be.
With Group Income Protection, you can show your employees that this sentiment is something that you take seriously. You don’t only care for them whilst their at work, but you also care for them as people - even when they’re too sick to do their job. This creates a better culture in the office, increases loyalty, and improves engagement.
In fact, some businesses choose to pay their employees after they get sick, because they care about them so much. But doing so for an extended period of time can strain the financial resources of your company and may turn out to be impractical. However, leaving your employees to live on benefits is also impractical for a business who cares about their people.
Group Income Protection can alleviate this risk, and together with vocational rehabilitation, it can support your employees from every angle, without hurting your pocket.
6. Group Income Protection is more cost-effective than an individual policy
It’s true - employees can take out Income Protection policies out for themselves. But this idea carries a few obstacles: firstly, many employees wouldn’t even know that this kind of policy exists, and if they do, many wouldn’t know what to look for and how to choose the right one for them.
As a conscious employer, you can make sure your employees are getting the best policy for them, with a Group Income Protection policy through a well-respected insurance company or a broker. This will take away more than just the price of the policy, but also the stress individuals may feel when they have to choose insurance.
But even if they were the most financially savvy people on the planet, Group Income Protection policy for your employees is not only an amazing employee benefit that they’d appreciate, it’s also significantly cheaper than individual policies.
7. Group Income Protection is easy to administer
Group Income Protection is one of the easiest types of insurance from an admin perspective. The premiums are usually tax free, there are normally no medical questions or examinations for your employees, and data renewals are the only administrative keep-up you’re going to have. With yulife, even those data renewals are super simple, as they’re all done online.
If you are looking to provide Group Income Protection for your employees, YuLife is here to help.
Click here to get a quote and learn more about how YuLife is working with hundreds of businesses to provide group risk benefits that engage, reward and protect their people.
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