It is also quite wise to insure your staff against periods of long-term
sickness.
Most companies pay at least 3 months on full pay, but thereafter many
cannot afford to continue paying staff if they haven't recovered from
sickness.
You will however want that staff member back when he/she does recover and
its therefore wise to insure the income payments to them at say 75% or at
least 50% of salary (until they recover) via an insurance policy.
If they don't recover, the payments can be made by the insurance company
until they reach normal retirement age, so that their pension provision can
be protected and they have an income that lasts throughout life.
Again, there are free underwriting limits with reasonable sized schemes,
and if you as an employer have health problems, you may be able to avoid
underwriting by including yourself as part of these arrangements.
It's like Group Critical Illness Insurance.
As an alternative to Income Insurance, many employers are now providing
Group Critical Illness Insurance, whereby if a member falls seriously ill
with one of a number of defined medical
conditions, a lump sum is paid out by the insurance company for say one
year's salary, as a kind of termination grant, or simply to tide them over
whilst they are off sick. Again free cover limits apply, so you as the
employer could also benefit if you are not in the best of health.
Please
contact us
for further information.
