Group Long Term Disability
Group Long Term Disability, also known as Group Income Protection, Permanent Health Insurance or Long Term Sick Pay, is an often overlooked, yet an increasingly valuable, employee benefit.
Many employers will continue to pay employees for a period after the onset of incapacity. In the event of a long-term incapacity however, the employer, if only for commercial reasons, will be reluctant to do so indefinitely. The employer may then be confronted with an unpleasant moral dilemma, of whether to continue income beyond any contractual obligation period, particularly where a long serving and loyal employee is concerned.
A Group Long Term Disability Scheme can provide an ideal solution to these problems.
Group Long Term Disability is a form of insurance that is designed to provide employees with a continuing income, payable in the event of incapacity arising out of accident or illness. The benefit will continue until the employee recovers, dies or reaches the previously agreed ceasing age of the policy, which is often selected to coincide with normal retirement age. Additional expenses can also be covered, such as pensions and national insurance contributions, and benefits can increase in payment to offset inflation.
Where an employer wholly sponsors a scheme, then under current legislation, premiums for the scheme will normally qualify for relief of corporation tax. Premiums paid on behalf of the employee are not treated as a benefit in kind and will not attract extra National Insurance contributions from either employer or employee.
Schemes invariably need to be tailored to the specific requirements of each business and various insurance companies offer this product so effective rebroking is vital to mantain costs, so independent financial advice in this area is important.
We will be happy to assess your needs and to advise you upon the most suitable type of arrangement for your business or carry out a re-broking exercise to ensure that your scheme's premium and terms are competitive.
Please contact us for a free quotation, without obligation.