Most employee packages fail to deliver

Too many employers are not offering income protection to their employees and their families according to research .

Nearly 3 out of 4 respondents (74%) indicated that Income Protection insurance was of greater importance to their workforce than Life Assurance cover.

Yet the majority of employers only offer life cover as standard, with Income Protection coverage a very long way behind.

Whilst income Protection has always been of value, this is now ever more important as new legislation creates further barriers to the long term sick claiming state benefits.

It's clear from the research that employers accept that Income Protection cover is the most relevant employee benefit for their workforce.

Despite this fact, less than half of companies (47%) offer this benefit currently.

Conversely, life assurance was found to be a benefit on offer via a much larger number of employers (82%), even though employees are some three times more likely to be off work with a long-term illness than die.

This is a strange mismatch, and one that employer's really should seek to address.

Even where an Income Protection policy has been put in place by an employer, it often only covers senior employees.

It is generally accepted by the industry that only 1 in 10 private sector employees are actually covered by an Income Protection policy.

There is a lack of understanding among both employers and employees in terms of what Income Protection actually involves, and the important benefits it can offer.

In our view it is a vital component of a benefits package for the 21st century, and is one of the most important benefits an employer can offer.

We believe that employers may be failing their employees by not offering it – which is why we always encourage and assist our clients in arranging it separately.