Your Industry  

Obtaining the best group income protection

This article is part of
Guide to Group Income Protection

Mr Homer recommends referring to the industry body GRiD (Group Risk insurance Development) for details of group income protection providers.

But before hunting for quotes John Letizia, head of public affairs at Unum, says advisers need to understand the needs of your client and their available budget to develop a proposal that meets their requirements.

Mr Letizia says group income protection is a very flexible product and can be tailored to meet specific needs. The amount of benefit can be set to vary between different categories of employee.

Article continues after advert

So, for example, managers could be insured for a different amount of benefit to other staff. Likewise, the period of absence after which benefit becomes payable and the duration of benefit can vary.

By talking to the provider’s consultants, Mr Letizia says you will understand the various options that are available.

Finally, Mr Letizia says you should ensure that you give the provider accurate data that they will need to provide a quotation. He says this will include basic details of the employees to be insured, for example, age, gender, earnings, occupations and industry of the client.

Incomplete data will mean it takes longer to obtain a quotation and Mr Letizia says it may not be as competitive as it might otherwise be if the underwriter has to make assumptions of the risk.

However it is important to consider more than premium as some policies provide more cover and additional support than others, Vanessa Sallows, benefits and governance director for corporate business at Legal & General, says.

For example, she says some providers pay a cash bonus for early notification of absences so that they can assess what treatment an employee needs without having to wait for a GP referral.

Some providers arrange and pay for rehabilitation treatment at no extra cost to the employer or employee, she adds.

Ms Sallows says it is also worth looking at the claims payment rates of the various providers and their success at helping employees return to work before the end of the deferred period; fewer claims means more favourable terms at the next premium review.

She says: “It can be tempting to go with the lowest premium but this can be a false saving when a claim arises.”

Aside from premium and benefits, Paul Avis, marketing director of Canada Life, says how easy it will be to obtain cover could also be a consideration when reviewing the market.

He says: “There is rarely medical underwriting with group income protection. We tend to find with group income protection premiums are round about 25 per cent of the cost of individual purposes.”