I have a few clients lately who might all be a good fit for group income protection cover. I am fairly new to the market and wondered how much emphasis I should put on the Employee Assistance Programmes and additional support elements in the products, as opposed to the core protection and price factors?
There are also huge moral issues concerning people returning to work. Employers want their employees back at work, thus rehabilitation services tend to go down extremely well. Early intervention in a claim is also vital, and is well received by HR departments, which obviously need to be very careful about managing sickness absence.
EAPs are, again, a buzzword for HR departments. Staff counselling services are very well received, in particular for stress-related issues. HR departments need to walk a very fine line here, and the ability to do this at arm’s length is crucial.
Also, legal assistance constituents go down very well, but confidentiality issues are paramount.
That said, there are also significant rate issues in this marketplace. There are an increasing number of providers in this market, and it is well worth shopping around. Some of the newer players have become very competitive.
On the basic point about being rate-driven versus ‘extras’, it really depends on the importance that HR professionals in particular give to this subject, but there is nevertheless a need for education.
Phil Kennedy, sales director of group protection, Legal & General
A good EAP is a positive, preventative programme of information, advice, training and services that help employees deal with events and issues in their work and personal life.
EAPs are important because they may help towards reducing sickness absence and improve presence at work by providing vital support for employees.
They can also increase staff retention and help in the duty of care for employees. So it is crucial to look at the features of a provider’s EAP, as well as additional support included in their products to ensure the offering meets your client’s objectives.
Some EAPs include telephone counselling, CBT treatment, a legal information service, crisis intervention, medical information, online support and provide face-to-face counselling sessions.
Group IP is designed to provide an income to employees who are unable to work long term due to illness and injury. It can act as a fantastic absence management solution that provides rehabilitation and treatment to help keep the period of absence to a minimum.
Some insurers also offer services where managers can discuss challenging situations and receive help in dealing with them.
Price and the core protection available are important when investigating group IP cover for clients. However, the EAP element of the products could make a real difference to employers when selling group IP.
