Those employees who have completed three years’ continuous service with the company are entitled to benefit from this insurance policy, which may provide individuals with an income in the event that they become incapacitated and unable to continue to work.  There are certain qualifying conditions, such as acceptance of an individual’s claim by the insurers, and a continuous twelve months’ absence from work, before the benefit becomes payable.

The level of benefit payable is 60% of the employee’s salary at the time of becoming incapacitated, less any state incapacity benefit.  In addition, if you are a member of the pension scheme, the insurance policy will cover your and the employer’s contribution whilst you are benefitting from Income Protection Plan payments. This valuable discretionary benefit would be expensive if provided independently of the company.  It is unusual for such a plan to be available to employees at any level within an organisation, and currently only 6% of staff in the UK are covered by this type of benefit.