Priceless – Income Protection

Have you ever realised how your employees tend to insure all their expensive items? – Their car, their house, even their pets – and yet the minority of the population tend NOT to insure income. So what are the implications on your business if your employee cannot work? – And what are the implications for the employee?

Emplincome protectionoyee sickness is unfortunately an unavoidable part of every business, and whilst steps can be taken to encourage your employees to live a healthy lifestyle and making provisions for a healthy working environment, time off from sickness can still occur. With statutory sick pay starting after just a few days of a sickness related absence from work, many companies use Group Income Protection to help their employees in times of long term sickness absence by paying a proportion of salary until the employee returns to work or retires.

An Income Protection policy can also provide the employee counselling if required and assistance when ready to return to work utilising an EAP (Employee Assistance Programme), it can feel daunting returning to work after a substantial period away from the ‘office’.  (

The general public’s view on taking out an income protection policy is that it will be ‘expensive’ and that it is not a ‘necessity’ cost. In retrospect, the burden to an employer without a group Income Protection scheme, includes costs of employing replacement staff or additional workloads being distributed amongst the workforce and for the employee the potential stress of being off work due to sickness but still having to meet monthly expenditure and household bills which could result in a longer period of absenteeism which is a negative factor for both parties.

Studies show that the cost of living is increasing. According, to Legal and General the true cost of raising a child to the age of 18 is now £200,000. This is an increase of 63% since 2003, with parents now spending nearly a third of their income on raising a child. (

At a time when already 6 in 10 parents are struggling with their finances; and with the cost of food at about £70 per week per average household. It seems now more than ever society needs to have guidance in ensuring that they can still meet their bills if they cannot work through sickness. (

The Chancellor George Osborn in his budget speech explained that there were going to be some changes to government-funded childcare support. This could potentially mean that some parents are going to be unable to receive childcare support, in 2017 the childcare vouchers are going to be replaced by tax free childcare. This could be an issue for employees with children that rely on child minders. (

Under this new government system, LV insurance is urging the government to provide information to parents and families on how the new government support combined with an income protection policy will have great benefits in the long term on peoples’ incomes.

Myles Rix managing director at LV, said ‘there is no guarantee that someone will be eligible for state help if they fall ill, so advisers play a vital role in educating parents about the benefits of income protection.’ (

Are you an employee – ask your director about Income Protection today. Are you an employer? Don’t wait for the unexpected – act now and speak to a member of the BDHL team. Together, we will find the most appropriate plan, to ensure that in a difficult time your only focus is to get better. +44(0)1892 891900 or