Group Income Protection
Group Income Protection (GIP) provides a continuing source of income for employees once an illness or injury prevents them from working for a prolonged period of time. It can also replace any lost income whereby an employee has to take a part-time or lower paid position because of illness or injury. GIP cover is utilized by an employer to cover a promise of long-term sick pay to employees.
Benefits begin to be payable after a pre-arranged waiting period – often six months – and are usually payable until retirement date should that person be continue to be in receipt of this payment.
Many policies can be integrated to some extent with the State’s incapacity provision. Currently Group Income Protection (GIP) benefit is commonly provided as a flexible benefit alongside Group Live Cover (GL).
The employer usually gets corporation tax relief on premiums and benefits are normally paid to the employee via the employer’s standard payroll system on a monthly basis. The employee pays income tax and any other taxes in the normal way.
Expert advice should always be taken by an insured body or organisation when establishing a group insurance scheme to ensure best practice prevails, all benefits are maximized, costs are minimized and all tax efficiencies are availed of.
Income Protection Calculator
The calculators on this website are for illustrative purposes only.
