Salary protection (Group Income Protection Insurance)




Salary protection (Group Income Protection Insurance)

Group Income Protection is designed to help employers to manage long term sickness absence more effectively. By providing a guaranteed income for employees who are unable to work as a result of illness or injury, an employer can help to support them financially through what can be an emotionally and financially stressful time.

When income is protected in this way, the employee’s pension, National Insurance contributions and retirement plans can be maintained, despite the break in normal salary payments.

CIFCO LtdĀ believe that Group Income Protection is not just about paying claims – it is about supporting an organisation’s workforce in all aspects of life. Our approach ensures that organisations have the right support and expertise every step of the way. We can source a range of services which aim to reduce the risk of an employee being long-term absent, and can also provide access to rehabilitation specialists to support employees as they plan their return to work.

Product features

Group Income Protection benefits can be provided in many different forms, often as a percentage of the employee’s gross pay after adjustment for the level of State incapacity benefit. The benefit is paid to the employer who deducts tax and National Insurance before passing it on to the employee.

Benefits may also be protected against inflation by including an escalation option. This means that any benefit payable will increase over time at an agreed rate or in line with RPI, to a maximum of 5%.

Flexible free cover limits are often available and temporary cover will normally be available to protect the employee through the underwriting period.

An employer’s lump sum option is also available on schemes of 20 lives or more, which enables the employer to provide a lump sum benefit at the end of a limited benefit payment term.

Benefits for Employers


  • Financial assistance at reasonable cost
  • Promote good employer-employee relations
  • Enjoy tax relief on contributions
  • Include cover for company pension scheme contributions and employer’s NI contributions
  • Strategic advice and management of absenteeism
  • Expert support in managing rehabilitation

Benefits for employees

  • Financial reassurance when it is really needed
  • Advice and assistance services
  • Help and support during rehabilitation
  • No benefit-in-kind tax penalties
  • Additional cover for pension contributions
  • Continued disability cover without further medical evidence
  • The information regarding taxation is based on our understanding of current legislation, which may be altered and depends on the individualā€™s financial circumstances.