The purpose of this policy is to provide cover in the event of illness or injury occurring during the period of cover, which results in the incapacity of an insured person preventing them from working.
After a initial period of absence, which is selected by the employer at the outset, the policy will pay a percentage of the incapacitated employees salary to the employer during the long period of absence which can be passed onto the employee via the payroll.
It is also possible to insure the employer National Insurance contributions and Pension contributions and for benefits to increase annually once in payment.
Benefits would then continue to be paid until the employee returns to work, dies or reaches the maturity age which is normally set to coincide with the Normal Retirement Age at the company. Any proceeds of the scheme payable on death will not normally be liable for Inheritance Tax.
Most schemes offer a Free Cover Limit which means employees can be insured without the need for medical evidence.
Whether you have a specific requirement or need a complete review of your financial affairs simply complete our online contact us form to arrange that first confidential meeting.