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.