The research found 42 per cent of employees with workplace income protection are unclear on its benefits, not knowing howlong they would receive benefit payments for should they become unable to work through illness or injury.
A slightly smaller proportion – 38 per cent – do not know what percentage of their usual salary they would be paid in the event of a claim. The research found 7 per cent of all adults surveyed have no idea whether or not they have income protection cover provided through their employer in the first place.
Despite many being unaware of the value of any cover they have as an employee, a third believe that income protection should be provided by employers as a standard benefit, with 28 per cent saying the same for life insurance.
Zurich says the findings suggest that while employees value the role employers can play in supporting financial well-being, more work is needed to communicate the value of these benefits to those who receive it.
UK wide, around 9m employees are protected by group life insurance offered by their employer, and 2m by group income protection. Annually, the group risk industry pays out £1.5bn in benefits in respect of those too ill to work or who die while in service, benefitting families or loved ones left behind.
Zurich head of market management for group risk Nick Homer says: “It is good to see adults who clearly value the benefits offered by some employers such as group life and income protection. However it is a real concern that some people are clearly unaware of what they’re covered for. Without this information, it is impossible for them to plan their finances properly to ensure that they and their families have adequate protection in place.
“As an industry, we need to collaborate more with employers, intermediaries and Government to support and educate employees on their financial well-being and the importance of putting the right provision in place. This is also important for awareness raising around the rehabilitation and support services available through income protection cover. These can play a powerful role in assisting people at work who have longer term health problems and where early intervention can help them recover and return to work more quickly.”
