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The benefits of income protection
03 October 2007 17:31:28
Discussing the cost to employers of employee absences, financial advisor Matt Haswell recommended group income protection schemes as one way to counter the losses.
Joint research by the Confederation of British Industry (CBI) and insurance provider Axa has shown that the average employee took around seven sick days in 2006, losing UK businesses 175 million working days in total.
Mr Haswell outlined group income protection schemes as an effective provision for the payment of sickness benefit.
The insurance expert highlighted that the cover offers a regular payment of a proportion of an employee's earnings during a period of extended absence through sickness, injury or accident.
Pointing out that most income protection schemes are written with an unlimited claim period, he said shortening this period to five years would reduce the costs of a scheme while still providing sufficient cover.
Once an insurer has accepted a claim, employees usually remain on their company's payroll, continuing to benefit from life insurance and pensions and retaining their entitlement to state benefits.
Mr Haswell concluded that the aim of both insurers and employers is to help ill employees return to work.
Direct Life and Pensions Services Ltd are one of the UK's leading providers of life insurance, term life assurance, mortgage protection, critical illness and life insurance advice online.
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