Group Income Protection: Helping Employees Recover and Return to Work
- Excellect
- 7 days ago
- 3 min read
Financial security, rehabilitation support, and peace of mind - for both employees and employers
When an employee is unable to work for an extended period due to illness or injury, the impact can be felt by everyone - the individual, their family, and the business.
Group Income Protection helps soften that impact. It provides a regular income to employees who are unable to work for medical reasons, ensuring they remain financially supported while they recover.
For employers, it’s more than just an insurance product - it’s a commitment to supporting your people through life’s challenges, while maintaining stability and care in the workplace.
What Is Group Income Protection?
Group Income Protection (sometimes called Permanent Health Insurance) is designed to replace part of an employee’s salary if they can’t work due to long-term illness or injury.
After a set waiting period (often 13, 26, or 52 weeks), the insurer pays a percentage of the employee’s salary - typically around 50–75% - until they return to work or reach the policy’s end date.
It’s not just about the financial support, though.
Most modern policies include rehabilitation services, occupational health support, and return-to-work programmes to help employees recover and re-engage safely.
How It Works
Employer pays the premium: Covering all eligible staff under a single policy.
Employee benefits if unable to work: They receive a portion of salary via the insurer.
Deferred period: The cover begins after an agreed number of weeks off work.
Duration: Payments continue until recovery, return to work, or the maximum policy period (e.g. 2, 5, or to retirement age).
Employers can tailor the policy to suit their business - adjusting benefit levels, waiting periods, and cover duration.
Why Employers Offer Group Income Protection
1. Protects Employee Financial Wellbeing
Long-term absence can be financially devastating. Income Protection ensures employees can focus on recovery without added stress.
2. Supports Absence Management
Rehabilitation and occupational health support help employees return to work safely - reducing long-term absence costs.
3. Enhances Retention and Morale
Offering income protection demonstrates a strong duty of care and builds loyalty.
4. Tax-Efficient for Employers
Premiums are usually an allowable business expense, making it cost-effective to provide meaningful support.
Added Value Beyond Income
Modern Group Income Protection policies often go much further than just income replacement.
They frequently include:
Employee Assistance Programmes (EAPs)
Mental health and wellbeing services
Physiotherapy and medical helplines
Second medical opinion services
Manager support resources
These additional features make the policy a core part of an effective wellbeing and absence management strategy.
Integrating Income Protection with Other Benefits
Group Income Protection works seamlessly alongside:
Private Medical Insurance (PMI) – for fast diagnosis and treatment
Group Life Assurance – to support families in the event of death
Critical Illness Cover – for financial help after a serious diagnosis
EAPs and Health Cash Plans – for early support and prevention
Together, these benefits provide a complete health and protection framework for your business.
Reviewing Your Cover
If you already have Income Protection in place, it’s worth reviewing it regularly.
Changes in salaries, business structure, or workforce size can affect how much cover you actually need - and there may be new, more cost-effective options available.
Excellect can review your current policy, assess market alternatives, and ensure you’re getting maximum value - fee-free and whole of market.
Final Thoughts
Group Income Protection is about more than income - it’s about compassion, stability, and support.
It helps your people through difficult times while protecting your business from disruption and uncertainty.
If you’d like to explore how Income Protection could support your workforce - or review your current policy - we’d be happy to help.
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