Deferred Period on Group Income Protection
arongunningham
Member
Does anyone know a provider that can go shorter than a 13 weeks deferred period?
Also, why is 13 weeks the industry standard - what is happening for the first 12 weeks? Are we assuming the company are paying full pay until that point?
Comments
@arongunningham you can get shorter than 13 weeks. See:
https://www.drewberryinsurance.co.uk/employee-benefits/group-income-protection-insurance
I'll have a word with the Group Protection Advisers and see if I can come up with some names.
Unum and AIG (formerly Ellipse) have deferred periods from 8 weeks.
I think it's historical reasons for the 13 week deferred period. During any deferred period, the employer is effectively self insuring. Only after the end of the deferred period, will the insurer pay the employer to pay the employee.
It gets really expensive the lower the deferred period on group IP. I've only really seen short deferreds on executive IP.