Your staff are covered from your date of joining for Income Protection (also known as Permanent Health Insurance, or PHI cover). They are no longer insured for this benefit from the date they cease employment with you.

Cover up to the “free cover limit” is without any medical evidence. Should the member’s salary level cause their cover to be above the free cover limi, a medical questionnaire would be needed to increase the cover in place; regardless of this, the free cover limit would always be in place for everyone.

This cover is an annually renewable Group Insurance Policy, provided and paid for by the Employer, and will pay the Staff the following benefits in the event they are unable to work through illness or long-term disability:

Payment of Benefit

For a consectuive period of at least 24 months, or right upto State Pension Age (the “benefit period”), your Staff would be paid an income during the whole of the benefit period for as long as they are off sick, index-linked annually (up to a 5% maximum).

Period before benefit is payable

26 weeks (this is known as the “deferred period”) is the initial period of sickness for which no benefit is payable from the Scheme.

Definition of incapacity

Members are treated as suffering incapacity if, throughout the deferred period and beyond, the Member’s illness or injury prevents them from, and makes them incapable of, performing the material and substantial duties of their normal occupation.

Scheme salary

Current basic annual salary or wages only.

Basic benefit

75% of ‘scheme salary’ less the ‘State scheme deduction’ (i.e. the annual amount, before deduction of tax, of the gross UK employment and support allowance plus the work-related activity component).


This benefit is paid for by the Employer and not a taxable benefit upon Members. Payment of benefits are usually via payroll and so taxed like your salary would have been had you not been incapacitated.

Cease age

Cover applies up-to 65 for all Members.

Claim forms should be obtained from the insurer, quoting a Member’s name and the policy reference or can be made available upon request via your own HR Manager / Director.