The new product meets the increasing need for employers to offer their workforce more flexible benefits packages to better meet their individual requirements. It means employers can manage benefits and spend more efficiently, while employees have the option to increase both the benefit amount and the payment period.
The proposition also enables businesses to provide staff with a core level of cover, as well as the the opportunity to choose from different benefit levels and payment periods as follows:
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Minimum income benefit will normally be 25% of salary
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Maximum income benefit allowed is the lower of either 80% of salary or £350,000
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Benefit payment periods available are 2,3,4 and 5 years or the policy terminating age.
Employees can change their benefits either at an annual window or following a lifestyle event, enabling employees to tailor their cover to meet their changing circumstances.
Nick Homer, Zurich's Corporate Risk Propositions Manager, said:
"Flexible benefits arrangements continue to be a growth area for the Group Income Protection (GIP) market. Providing GIP cover via a flexible benefits arrangement can be very beneficial for both employers and employees. For example, the employer still receives all the benefits of GIP, including rehabilitation support, without having to offer full cover as standard.
"Flexible benefits arrangements are increasingly favoured by larger employers, because they enable a wide range of employee benefits to be offered, whilst also helping employers to control their overall benefits spend.
"A flexible benefits arrangement can also help increase employee engagement, awareness and appreciation of the benefits available to them."
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