A case in point is the fact that a quarter of all Group Income Protection claims are now made for mental health issues. According to data by Legal & General, who have confirmed it paid out £292m in group protection claims in 2018, these figures reinforce market-wide research that shows that mental health problems continue to be the most common cause of claims.

Different Types of Cover

One of the most important things to remember is that life cover and critical illness cover don’t cover mental health. Many customers naturally assume that these types of protection would cover such a prevalent health issue, especially as mental health is also one of the most common causes of workplace absenteeism but this is simply not the case.

In contrast, income protection would pay out if you were off work past the deferment period on the policy so it could represent a very valuable form of protection for certain people.

The L&G research shows that mental health accounted for one in four group income protection claims last year, helping hundreds of employees back to work both within and beyond the deferred period with the support of the EIS.

The Value of Value-Added Services

This research also reinforced the importance of value-added services such as early intervention services and rehabilitation including physiotherapy. About two-thirds of claimants who returned to work using L&G’s rehabilitation services in 2018 did so before having to claim on their group income protection policy. So, the value speaks for itself.

As a market leader in protection, L&G services set a benchmark for other insurers with a flexible offering where trained clinicians are used to assess the best treatment for employees for optimum health and productivity results.

This is an accurate reflection of the increasingly intelligent and bespoke nature of protection insurance, and the value that it provides to individuals, employers and their team.

The industry continues to grow and evolve, and this summer’s Protection Review Conference will see an introductory session dedicated to the issue of mental health and underwriting.

A panel of experts will discuss how the industry can improve access to insurance and how can we get more people covered, considering issues such as inclusion and the role of technology in underwriting and claims.

An Open Conversation

Considering insurance beyond the core financial element is a topic that Justin Harper takes on with his guest blog for Protection Review. He looks at the role of the protection industry when it comes to mental health and how the conversation has become more open around a previously taboo topic.

From an industry perspective, this means that more challenging questions can be posed on how to best communicate this life-changing support from the insurer to the client.

Similar communication methods can be used when it comes to employers conveying value to their employees. It is important to communicate how protection cover helps people become more resilient and gain access to much-needed support from the earliest stages of their mental health issues. The value-added services must be emphasised to show that this is a holistic service.

Early Intervention

Early intervention is arguably the most valuable aspect of protection insurance where employers can demonstrate support for colleagues at the earliest stage. This is also important for risk management and business bottom line, catching the illness early to help employees recover and return to work as quickly as possible.

According to L&G’s claims and governance director, nearly 3200 rehabilitation treatment sessions were used through their partners in 2018 which shows that recognition of the value of added services is certainly taking off.

More than a third of all claims submitted to the group risk industry in 2018 saw individuals able to return to work because of early intervention measures with more than half of individuals using available early interventions to help with mental illness. 

In addition, early intervention referrals for mental health also support employers in dealing with complex illnesses without any additional cost to the premiums paid.

Holistic Protection Insurance Income protection provides not only financial relief but also emotional support for individuals who are concerned about taking time off work.

With mental health issues, these worries can make problems far worse. Without early intervention, employers risk allowing issues to fester and the employee taking extended time off to deal with deeper issues.

This all means that we need to speak the right language when it comes to mental health and continue to break down stigma. Employees should feel able to approach their employers should they experience symptoms and have an open conversation without judgement.

For more advice and support on choosing the most effective protection insurance policies for your business, contact Vintage Corporate today on 020 8371 5232 or email info@vintagecorporate.co.uk

The post Mental Health and Income Protection first appeared on Vintage Corporate Limited.

Families need to put support in place should their main or an important income stream suddenly stop without anything to fall back on. But many consumers are failing to invest in income protection, opting for critical illness cover or – in two thirds of cases – no protection insurance at all.

Our Perception of Risk

In order to address this gap, we need to understand why it exists in the first place. Many of the reasons are common barriers when it comes to all types of insurance – lack of awareness, fear of the cost of premiums and the assumption that “it won’t happen to me.”

Otherwise known as the ‘availability heuristic’, the Income Protection Task Force (IPTF) examined this phenomenon in more detail and discussed our “our tendency to experience a perception of risk and as a result, be more motivated to protect ourselves against that risk.”

The article discusses how the benefits of car, home and holiday insurance feel far more tangible to consumers than income protection, because “they are more commonly encountered in everyday life”.

But in reality, the impact of illness or disability can resonate far more deeply as families struggle with a whole host of new challenges. The physical and emotional impact of such a situation affects the patient, their families and employers, who may need to make major practical changes to accommodate.

Family members may need to take time off to care for the patient, or care for dependents that would otherwise have relied on the sick party. They may need to make adjustments to the home, or adjust their own working hours and structure in order to adapt to their new circumstances. Employers will need to introduce cover for the sick employee which can be tricky when the length of time that they will be absent is uncertain.

An Evolving Market

With more than a million workers off sick for more than a month every year, this is not a rare occurrence. It can happen to the best of us. And as our working landscape continues to change and evolve to shift a heavier weight onto freelance, self-employed and small business workers, the importance of income protection arguably becomes far more pressing. 

Products are slowly evolving to meet these changing needs and we need to make income protection a key part of the protection conversation alongside more traditional forms of cover such as home and life insurance.

It is up to advisers and thought leaders to break down misconceptions about costly policy premiums and educate consumers about the essential nature of this type of protection.

Research shows that more than half of UK workers would worry about their income if they were too ill to work, and Statutory Sick Pay will only go so far.

According to the IPTF and figures from the Swiss Re Term and Health Watch 2018 report, sales of income protection have increased, topping 120,000 last year but we still have a significant way to go to meet this untapped demand and stay on par with other health-related employee benefits such as critical illness cover.

We need to emphasise to individuals that income protection not only provides essential support when they and their family need it the most, but that it also offers vital rehabilitation to expedite return to work. This means better health and their income back to normal more quickly – it’s difficult to put a price on that.

Targeting the Younger Generations

We often speak on the blog about how a strong employee benefits package is an invaluable recruitment and retention tool. Employers are fast cottoning onto the particular appeal of income protection for attracting the younger generations (millennials and the under-35s) as this demographic is far more likely to build a portfolio career with an average of nine jobs over a 50-year working life.

This makes them far more likely to seek financial planning stability early on that will to take them through their working lives and help them to build a healthy retirement fund from the early stages of their career.

With research showing that younger people feel that they are addressing their protection needs too late in life, it is up to employers to grab this unfilled need and convert it into satisfied, loyal employees with a well-rounded benefits package that meets their needs.

Again, we need to create a conversation that highlights the dangers of not taking out protection insurance and the many vital benefits that it provides, in order to break down those stubborn barriers.

It’s also important for employers to understand the benefit of income protection for supporting their employees with mental health issues.

Taking the Next Step

Income protection exists as a vital benefit to help individuals and companies to build financial resilience. For more information on how to integrate IP into your employee benefits package and roll it out in an effective way to encourage take-up, contact Vintage Corporate today.

The post Income Protection and Financial Resilience first appeared on Vintage Corporate Limited.

We always advise our clients that healthy financial planning means taking an open-minded and proactive approach that includes reviewing all wealth and asset arrangements on a regular basis to ensure they are still fit for purpose.

From the employer perspective, this is just as important. Creating an employee benefits package is just the first step as you need to regularly review all of your benefits to ensure that they are legally compliant, meet the needs and desires of your employees, and provide you and your business best return on investment.

This is especially timely as recent government employment figures show that a record number of over-50s are now in the workforce. Employers need to make sure that they are catering appropriately to this demographic with regards to retirement planning provisions.

Figures show that over-50s account for one in three members of the workforce in comparison to 21% back in 1992 and employers might choose to focus on value added services to cover the needs of this demographic.

Practical and Emotional Support

We must always consider the desired outcome when it comes to managing our finances which is why value-added service have evolved in recent times to become an essential part of the protection package. Many providers have developed their offerings to include these support options which cater to employees of all ages and needs.

These essentially act as bolt-ons to critical illness, health insurance and income protection policies to ensure that the needs of the insured person/s are considered not only upon diagnosis but before, during and after a claim is made. But it’s crucial to understand that a claim does not even need to be made in order for the insured party to access these services.

Prompted by the industry’s desire to further support people with mental health issues, value added services offer practical and emotional support to individuals and their families during difficult times regardless of whether there is an ongoing claim. Nurse care support, bereavement counselling and therapy are prime examples of such services, which support a healthier and possibly speedier recovery.

Some protection policies may also include services such as medical helplines, carer support and virtual GPs. Income protection customers may benefit from value added services such as in-house rehabilitation and vocational coaching.

Using Protection to Build Trust

It all depends on the policy chosen and the needs of every individual, but the fact remains that when these added extras are included with an insurance package from a corporate perspective, they are likely to expedite both the initial treatment (thanks to early intervention) and the employee’s return to work through a solid and structured rehabilitation pathway.

For employers providing benefits, value added services can build extra bricks in that solid bridge of trust between you and your team. It shows that you have taken the time and effort not only to build an employee benefits package that caters to their needs, but to go that extra mile in order to support them during difficult times.

A crucial aspect of value-added services is that they recognise the importance of prevention, for example, with the provision of second medical opinions. This provides the insured person with a fully supportive framework from the moment they see the first signs of illness or injury.

It also potentially reduces the need to make a hefty claim by supporting early diagnosis before an illness becomes more advanced and therefore more complex and time-consuming to treat. For smaller businesses in particular, this could be an intelligent risk management strategy.

A Customer-centric Approach to Insurance

By choosing to invest in customer-centric insurance that values the consultative approach and early intervention support, you are showing your employees the value of such insurance and encouraging both team loyalty and benefits take-up.

This is a type of protection that is truly invaluable where the focus is on making clients healthier and less likely to claim on their policy in the first place.

It also avoids the need for you to put pressure on valued employees to return to work more quickly than they are able and risk damaging good relationships.

This type of insurance offers peace of mind that you have all the support available to get your employee healthy again as soon as possible.

It also means that people and their dependents can benefit from protection “immediately” without a prior claim needing to be made.

This is protection at its very best and while the cover itself should be the most important factor for choosing a policy, added value options are likely increase engagement and emphasise the real value of this benefit and the support it brings.

Mental Health and Value-Added Services

Dedicated nurse care support is one of the most common value-added services and a fine example of how patients feel supported with access to a lifeline that they can use as and when they need. It is ongoing support, not a one-off or limited service, that will help people when they feel they simply cannot cope or are in need of practical advice.

The same goes for medical helplines and GP apps – with the NHS under more pressure than ever, this type of personal dedicated service will transform a patient’s experience.

It is this human aspect that encourages long-term loyalty and retention. With mental health one of the biggest causes of absenteeism and therefore a great headache for employers, the wellbeing and support service that comes with so many protection policies provide an immediate lifeline for those in need, helping to relieve excess stress and supporting employees in maintaining their day to day lives.

This might be support following a bereavement or critical illness diagnosis, mental health counselling or more general support in handling practical and emotional issues.

Whether you’re seeking individual or corporate protection, it is well worth considering how value-added services could support your end goal. Contact our team at Vintage Corporate today for more details.

The post The Importance of Value-Added Services first appeared on Vintage Corporate Limited.