Growing Your Business with Unum s new Income Executive Protection cover and - A Guide for Advisers Group Income Protection

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1 unum.co.uk Growing Your Business with Unum s new Income Executive Protection cover and - A Guide for Advisers Group Income Protection Cover for what s really needed - a foundation level for essential financial outgoings. Extending cover to all employees Supports your clients businesses - more than just a benefits payment for ill or injured employees. Because everyone A cost-effective solution that brings Income needs Protection a back-up within plan reach of all employee benefits budgets. Because everyone needs a back-up plan

2 Broader business benefits As a small business owner, having the tools to tackle what s around the corner is vital. But even the best business plan can come unstuck if a sudden illness or injury strikes you or one of your employees. If you re considering Income Protection for your senior members of staff, you ve taken an important first step towards protecting your team. But it s worth taking a step back to consider the bigger picture. Group Income Protection allows you to extend that peace of mind to all your employees. Not only does the cost compare favourably to executive cover, it also brings a much broader set of benefits to your business. This resource gives you a quick guide to Group Income Protection and the range of benefits it provides. 2

3 What is Group Income Protection? It s insurance provided on a group (collective) basis for employees that protects a company and its staff from the impact of sickness absence. Why do I need it? Sickness absence costs money, so directly impacts on your bottom line. With 11% of UK workers off sick for at least 6 months, sickness absence is a costly and time-consuming issue for companies unless they take steps to insure against it. You know what your premium payments are, so you don t face unpredictable costs associated with sudden absence. The impact of illness and injury 6.5 billion Sickness absence costs UK businesses an estimated 6.5 billion a year 1 11% 11% of employees have been off work for 6 months or more 2 A third of companies only absorb the costs of sickness absence for a maximum of 1 week before it impacts on the business 3 How does it benefit me? As a business owner, Income Protection benefits you in four ways: You get cover for you and all your staff You can access a host of built-in services designed to help you with the day-to-day running of your business, including a free legal helpline that saves you time and money Your employees know you ll take care of them if they get ill or injured and can t work. It s a cost-effective way of enhancing engagement, retaining top talent and recruiting new employees You put absence management in the hands of vocational rehabilitation experts providing practical and achievable return to work plans wherever possible 3

4 Insurance that delivers more The benefits you offer your employees are an important part of their overall package. You may already offer a pension and life insurance. Income Protection is a valuable addition and gives your business something back. Income Protection can result in significant savings when measured against the outlays that come with absence - the cost of salaries, recruiting temporary staff, legal help and the impact on productivity. A cost-effective way to protect your company and your people Rebalancing your benefits portfolio could provide every member of staff with a back-up plan without adding to your outgoings. A foundation level of cover can cost just 200 per employee, per year. And with pensions auto enrolment on the horizon, now s the perfect time to talk to your adviser about a detailed review of your benefits portfolio. Auto enrolment explained Auto enrolment is a new legal requirement that makes it easier for employees to save for retirement. All employers will need to enrol their workers into a qualifying workplace pension scheme if they are not already in one. Auto enrolment applies from: 1st February 2014 for companies employing between 250 and 349 people a date TBC in 2014 for companies employing between 60 and 249 people a date TBC in 2015 for companies employing less than 60 people For more details, see your Unum Sales Consultant about auto enrolment. 4

5 Key points of Executive & Classic Group Income Protection Executive Classic Group Income Protection Term Minimum term - 5 years No minimum Maximum Benefit Up to 300,000 per year up to or 80% of employee s gross earnings Up to 350,000 per year up to or 80% of employee s gross earnings Access to cover Requires Medical Underwriting Free Cover Level (FCL). Guaranteed level of cover for all members without the need for Medical Underwriting** Pension Contributions Can be covered up to lower of 1/3rd of salary or 50,000 Can be covered up to lower of 1/3rd of salary or 120,000 EAP Included Yes but with LifeWorks Legal also available Deferred Periods 4, 8, 13, 26 or 52 weeks 13, 26, 28, 41, 52 weeks Typical annual premium* 11,000 Illustration based on 3 salaries of 100,000 benefit of 80% of salary, cover to State Pension Age (68 years old), 26 weeks deferred period 4,000 Illustration based on 10 lives, payroll 460,000, benefit of 75% of salary, cover to State Pension Age (68 years old), 26 weeks deferred period * Illustrative costs will differ for companies with different demographics and benefits ** Benefits over FCL will be subject to medical underwriting Built-in Employer and Employee Assistance Programme (EAP) Unum LifeWorks Legal offers a no extra cost, comprehensive package designed to take the strain out of dealing with the legal issues facing your business. It can save you thousands in legal costs. The service includes: an advice helpline manned by expert legal advisers from 8am-8pm an online documentation system allowing you to create the key legal documents your business needs Unum Lifeworks offers your staff and their families practical information and confidential support on a range of life issues including: everyday life stress, healthy living and relationship problems family life tips on parenthood, childcare or support for an elderly relative money better finance management and understanding of consumer rights work career development tips and achieving a better work-life balance 5

6 Take the next step Your business can benefit from Income Protection. For more information, contact your Financial Adviser who can help you choose the cover that s right for you. 1,3.CEBR research Unum/Guardian ICM poll for LifeWork UK Financial Protection Unum specialises in forward-thinking, imaginative financial protection benefits (Income Protection, Life cover and Critical Illness cover). We work with advisers and their clients to deliver solutions that make these invaluable benefits accessible to all UK employees. Financial protection benefits are essential when you need them and provide peace of mind when you don t. They provide crucial financial support to employees and their families in the unfortunate event that they can t work or earn an income. And companies that offer them can create a more motivated and engaged workforce, achieving a sustainable competitive edge in today s challenging business environment. Income Protection Critical Illness Life Cover Registered office: Milton Court Dorking Surrey RH4 3LZ Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England We monitor telephone conversations and communications from time to time for the purposes of training and in the interests of continually improving the quality of service we provide. Tel: Fax: Copyright Unum Limited 2014 UP /2014 Page 6 of 6 unum.co.uk