Personal Groupís VGIP changes the future of income protection

Voluntary Group Income Protection (VGIP) plans offered by Personal Group are changing the future of income protection available to individual employees.

VGIPs enable employees to receive a regular monthly income benefit if they are sick or injured and unable to work for a continuous period and by encouraging groups of employees to join the scheme, members benefits from reduced premiums and increased cover.

ìVGIPs designed to provide an affordable income protection solution for skilled and semi-skilled workers. They are salary sacrifice schemes whereby employees contribute to an overall protection plan each month. The plan covers employees in cases of long term sickness, so they are covered well after their statutory sick pay runs out,î explains Karen Edwards, key account director at Personal Group.

ìThe scheme also works out on average of 30% to 40% cheaper than if an employee was to source income protection themselves. The more people who are involved in the scheme, the lower the risk of someone falling ill, and this is reflected in the reduced cost for participants,î she continues.

VGIP key facts:

- A minimum of 250 employees must sign up for VGIP and there is no maximum number of members to any company scheme.

- Once 50% of employees in an organisation are signed up to the scheme, there is no medical underwriting. Therefore, previous or current medical conditions are not a deciding factor for getting cover.

- VGIP provides a regular monthly benefit it you are sick and disabled for a continuous period. It also provides a lump sum if you are likely to remain incapacitated for the remainder of your life.

- The regular monthly benefits are paid after a pre-determined deferment period and are payable ñ subject to meeting the incapacity definition of the plan ñ from 2 and up to 5 years, depending on the options chosen.

- If policyholders continue to be incapacitated after this time and will remain so for the remainder of their life, they will receive a lump sum equivalent to 12 times the basic monthly benefit.

- Should individuals return to work following prolonged periods of illness, VGIP offers to pay up to 75% of an employeeís original salary if they return to a job that is lesser paid than their previous one.

ìVGIPs not only benefit employees, but they also act as a great tool for employers to recruit, retain and reward staff, giving employees the confidence that their income will be protected should they become sick or injured,î adds Edwards.

VGIPs are underwritten by Unum Limited, the biggest income protection provider in the United States. Personal Group is the only company offering VGIP protection in the UK.