• Give your employees an income until retirement
• Offset the costs of the scheme against tax
• Protect against the consequences of the Disability Discrimination Act 1996

By law companies have to pay 28 weeks statutory sick pay to employees, although some exclusions apply. However, after this point, while an employer may morally wish to continue some form of payment, cashflow and profitability decisions may prevent them from doing so.

Permanent Health Insurance (PHI) can provide an income for the employee while protecting the companies cash flow. The 1996 Disability Discrimination Act states that if an employee has become disabled during their course of employment with a company, a new role must be created. Therefore a PHI policy can help provide for their rehabilitation.

The cost will depend on the type of cover taken out, typically it will be around 1-2% of the company payroll. Schemes are tax efficient and can be offset against corporation tax.

As well as PHI, we can also give advice on Critical Illness Cover, whereby a lump sum would be paid out in the event of any employee being diagnosed with a specific critical illness.

At Forum Wealth Management, we can advise on which will be the most suitable policy for you and your fellow employees.