Group Income Protection (IP)

IP is used to provide income for employees in the event that they are unable to work due to illness or accident.

The insurance usually pays out an income after a deferment period (typically 13-26 weeks) after the illness occurs. During the deferment period the employer will continue paying the employees full salary. After that point the insurance will continue to be paid until the employee can return to work, or retirement age, whichever is sooner.

IP is an increasingly popular benefit for employers to provide. It can also be used to protect an employees pension contributions made by the company in a period of illness. The maximum benefit that can be provided is 75 per cent of an employee’s remuneration less the state incapacity benefit.