In an era when the benefits provided by the State if you are unable to work through ill health is very poor, an employer who is able to offer all or some of his employees income protection insurance is giving a very valuable benefit.
Nicholls Stevens can advise on setting up these schemes.
A number of decisions need to be made
- When should the benefit commence ?- usually this fits in with the contract of employment, when the employer stops paying the Insurance Company picks up the claim.
- How much benefit should be paid – 50% of basic pay would be a reasonable level of benefit with, perhaps higher levels of benefits for senior employees. In all cases it is good advice to include an element of escalation
- How long should the benefit continue? – some schemes allow the benefits to run on to retirement age, others only run for 5 or 10 years thus reducing cost
Nicholls Stevens will advise on the benefit structure which fits your organisation. We will research the market to find not only competitive rates but also Provider’s who will give high level of non – medical cover. This is important because it means that the majority of the staff can be covered for this valuable benefit without medical or health conditions exclusions being placed on the cover.
Our experience in this market means that we have experience of how certain Providers deal with claims. When taking out this type of cover, there needs to be a balance between cost and knowing that in the event of a claim it would be sympathetically treated
We undertake to review the cover and cost for our clients on a regular basis.