Norwich Union has launched a group income protection product to replace its existing Safeguard policy.
It follows research that found 70% of companies recognised the benefits of income protection, but did not buy it.
The product offers:
cover for minimum of three employees but no maximum number
maximum benefit of £200,000: 75% of the first £160,000, minus state long-term incapacity benefit, plus 25% of earnings over £160,000
employer-paid national insurance contributions
single premium for schemes with less than 30 lives; unit rated for schemes with 30 lives or more
premiums can be paid annually by direct debit or cheque and monthly by direct debit with 4% loading
the termination ages are 55, 60, 62 and 65
non-selection limit may be applied to schemes with 10 lives or more, creating a benefit level below which medical evidence will not usually be required
AIDS/HIV cover can be included for an additional cost
full cover is available pending terms providing the incapacity is not due to a pre-existing condition
definition of incapacity is on an “own”, “suited” or “personal capability assessment” basis
In addition, companies may opt to cover:35% employer paid pension contributions and 5% employee paid pension contributions to a maximum of £50,000.
