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Employee Income Protection Plan

Employee Income Protection Plan

  • You can provide an income to your employee, if illness or an injury means that they can't work
  • Can be used as an employee benefit to help attract and retain valuable staff in your business
  • It could cover the employer's National Insurance and pension contributions
  • Potential to enjoy tax relief on the premiums
  • Designed to tie in with your business' sick pay arrangements
Summary

Protect the greatest assets in your business, your employees

As a business owner of a dental or legal practice, you'll appreciate how important it is to attract and retain the best employees.  Great employees are instrumental to a business' success, so you'll want the best people around you to help drive revenue, profits and growth, especially in a competitive job market. 

Today, businesses are looking to stand out from the crowd and one of the ways they are doing this is by offering a more attractive employee benefit package to key employees.

This is where a Wesleyan Employee Income Protection Plan can help. 

What is an Employee Income Protection Plan?

The Employee Income Protection Plan is designed for dental or legal practices who want to provide income protection for one or more people working within their business against the long-term financial consequences of illness or injury. 

You decide which employees you want to cover and in the event of a successful claim, we'll pay you an amount each month that replaces a proportion of their earnings, so that you can provide them with a continuing salary through your payroll.

How can the plan benefit your business?

Replacing employees can be expensive. There are cost implications to consider such as recruitment agency fees and advertising costs, as well as the time involved in the selection and interview process. So the plan can be offered as a valuable employee benefit, which could help attract and retain key members of staff. 

For your current employees, you can demonstrate that you value the contribution they make to your business. For prospective employees, it can help you to attract better candidates to your business.

There's peace of mind for your employees too. They won't have to worry about how they will continue to meet their financial commitments, leaving them free to focus on their recovery, giving them the best chance of returning to work as soon as possible.

Tailor your plan

With the help of your Wesleyan Financial Consultant, you can choose how to structure the plan to make sure it meets the needs of your business.

We start paying a replacement income to you when your employee needs it which can, if necessary, support them right up until their planned retirement age. You can of course choose a shorter benefit payment period, if you prefer.

Advantages for you

Choose how much income your employee will receive while sick


You can choose how much they receive if they become too unwell to work, up a maximum of:

Choose how much income your employee will receive while sick

 Occupation  Maximum weekly insured benefit
 Dentists and lawyers  £4,200
 Other occupations  £2,300

It can cover Employer National Insurance and pension contributions

You can cover any National Insurance contributions you will have to continue paying as the employer. In some cases, you can also cover the pension contributions you make as their employer, safeguarding not just their salary, but their retirement income too.

Tailored for your business

You decide which employees are to be covered. Each person will have their own plan. There are also options to suspend or reduce your employee's cover to take account of possible career breaks such as maternity or paternity leave.

Designed to fit in with your business' sick pay arrangements

You can decide when the benefit payments should start, to suit your business needs. In the event of a successful claim, we can start paying out after 0, 4, 8, 13, 26 or 52 weeks of illness or injury.

So you can arrange for it to start when the employee's sick pay would stop. Or, you could potentially reduce the amount of sick pay the business pays out, by choosing for the plan to start paying out earlier.

As an employer you are required by law to pay your employees £89.35 per week Statutory Sick Pay (SSP) for up to 28 weeks, if they're too ill to work1

1. Source: www.gov.uk

Unlimited claims

There is no limit to the number of claims you can make.

Potential to enjoy tax-relief on the premiums

Premiums are normally treated as a business expense, so you can deduct them from your profits before calculating tax. This means you pay tax on a lower amount. Note however that if the employee being insured owns a significant share of the business, HM Revenue & Customs (HMRC) may not allow tax relief on the premiums.

You should check this with your local inspector of taxes.
Important information
Please use the link to the Key Features document of the Employee Income Protection Plan for important information about this product.


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