Group income protection with Unum: what employers need to know
Unum UK is one of the best-known group risk insurers, but that does not make it the right fit for every employer. Here is how Unum group income protection works, what support services come with it and how a broker compares it with the rest of the market.
Family-run and regulated. We are a broker, not part of Unum or any insurer, and we help employers across Northamptonshire, Bedfordshire and the UK compare group protection.
What is Unum group income protection?
Unum UK is a specialist insurer in the group risk market, which means it offers employee benefits such as group income protection, group life and group critical illness to employers. Group income protection is a group scheme that pays a percentage of an employee’s salary if they are unable to work because of long-term illness or injury, once their own sick pay has run out.
The employer is the policyholder and pays the premiums. The insured employee receives the monthly benefit through payroll, and the scheme can also give access to health and wellbeing support. For many employers, it is the most valuable group protection benefit because it acts as a financial safety net for staff at the point they need it most.
Unum UK is the UK arm of the wider Unum Group. This page is general information from a broker. We are not connected to Unum, and we do not suggest that it is the best insurer for you without first comparing your options.
What does Unum group income protection cover?
Unum describes its group income protection as paying a percentage of an employee’s salary when they cannot work due to long-term illness or injury. The exact level of benefit, the deferred period and the definition of incapacity depend on the scheme the employer chooses, so two employers can end up with quite different cover from the same insurer.
Unum also markets a simpler product for smaller employers. It has described this as a flat benefit of £12,000 per year, or 100 per cent of earnings if that is lower, with flexible start dates for payments. Product details change over time, so we always check the current terms with the insurer before we put anything in front of you.
As with any group scheme, it is important to look beyond the headline. Compare the level of financial support, how long the benefit is paid, the terms for pre-existing conditions and how the scheme treats an employee who returns to work part-time. Those details decide how the policy performs when someone claims.
Help@hand and rehabilitation: the support services that come with cover
A feature that many employers value is the support that comes alongside the insurance. Unum says its Help@hand service, which includes remote GPs, mental health support and an employee assistance programme, is available to employees insured under its group income protection, group life and group critical illness policies at no extra cost.
Alongside Help@hand, Unum describes vocational rehabilitation and return-to-work services provided through dedicated rehabilitation consultants, a Mental Health Pathway for early intervention, a cancer navigation service and online workshops for HR teams and line managers. In practice, that means a claim is not only about the money. The insurer can help an employee get back to work sooner, and give managers practical support with absence management.
This is where the value of group risk shows. Early intervention and prevention can shorten sickness absence, which reduces disruption to the workforce and can improve the return on investment for the employer. Those benefits are additional to the financial support that the policy pays.
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Book a free business protection callHow does Unum group income protection work?
A group income protection scheme works in a few steps. The employer chooses the level of cover, usually a percentage of salary, and the deferred period, which is the wait before the benefit starts. Many employers set this to match the end of company sick pay, for example 26 weeks. The insurer then quotes the premium based on the size and profile of the workforce.
When an employee is off work through sickness, the employer notifies the insurer once the deferred period is close. The insurer assesses the claim, may arrange a referral to support services, and, if the claim is accepted, pays the benefit. The benefit continues until the employee returns to work, retires, dies or the policy term ends, whichever comes first.
The employer’s role is to keep the insurer informed and to support the employee’s return. A well-run scheme reduces uncertainty on both sides, and a broker can help with the paperwork and with any challenge over a decision.
Choose the scheme
Decide the benefit level, deferred period and who is covered.
Claim and support
The insurer assesses the claim and can offer rehabilitation and wellbeing support.
Return to work
Benefit is paid until recovery, retirement or the end of the policy term.
How long does group income protection last?
How long the benefit lasts depends on the policy term chosen by the employer. Some schemes pay until the employee’s retirement age, while others limit the benefit to a fixed period such as two or five years. Either way, payments stop earlier if the employee returns to work or is no longer ill enough to qualify.
A longer benefit period costs more, so employers often balance it against budget. Cover to retirement offers the strongest protection for staff with long-term illness, while a shorter period keeps premiums lower for a large group.
The deferred period is a separate choice. A longer deferred period, matched to the employer’s sick pay, reduces the cost significantly, which is why it is one of the first things we review with a business.
Is Unum group income protection taxable?
Employers often ask about the tax treatment. When the company pays the premiums for an employer-paid group income protection scheme, the premiums are generally an allowable business expense and are not normally treated as a taxable benefit for the employee. Rules can vary, so check with your accountant.
The benefit itself is paid to the employee through payroll, which means it is subject to income tax and national insurance in the same way as pay. That is different from a policy that an individual owns and pays for themselves, where the benefit is usually tax-free.
We do not give tax advice, but we will explain how the scheme is structured, and we are happy to talk to your accountant or payroll provider.
How does Unum compare with other group income protection insurers?
Unum is a major player, but it is not the only one. Aviva, Canada Life, Legal and General and Zurich all offer group income protection, and each has its own strengths in pricing, claims handling, underwriting appetite and support services. Larger employers may negotiate bespoke terms, while smaller employers may find that some insurers are more open to small schemes than others.
The best way to know is to compare quotes and terms on the same basis. That means the same benefit level, the same deferred period and the same eligibility, followed by a careful look at the definitions of incapacity, the treatment of pre-existing conditions and the quality of the support services.
You may see online reviews of any insurer, including strongly positive and negative ones. Treat them as a starting point rather than a verdict. A claims experience depends on the individual, the condition and the scheme. What matters more is whether the policy wording and the service model fit your workplace.
Going direct to one insurer
- You see one insurer’s terms only
- No side-by-side comparison of definitions
- You handle the paperwork yourself
- Harder to judge whether the price is competitive
Using a broker to compare
- Several insurers compared on the same basis
- Definitions and exclusions explained in plain English
- Help with set-up, renewals and claims
- No extra cost, as commission is in the premium
Is Unum Group an insurance company?
Yes. Unum Group is a large US-listed provider of employee benefits and related insurance, and Unum UK is its UK business, focused on the group risk market. In the UK it provides group protection through employers and advisers rather than selling directly to individuals.
That matters if you are searching for a personal policy. If your employer already has cover with Unum, you would normally find out about the benefits through your employer or HR team, and any claims go through the employer’s scheme. If you are an employer looking to set one up, a broker can request quotes on your behalf.
If you are not sure whether your workplace has cover, ask your HR team for the scheme booklet. It will explain the benefit level, the deferred period and how to make a claim.
How to get a quote for group income protection
To get a quote, we need a few basic details: the number of employees, their salaries and ages, the benefit level and deferred period you want, and whether you already have a scheme. From there we approach the insurers on your behalf and compare the results.
Using a broker costs nothing extra, because the commission is already built into the premium. We explain the options in plain English, help you present your workforce to underwriters and stay available when it is time to renew or claim.
We are a family-run firm, so you speak to a real person. If you would like to see how Unum and the wider market would price your team, use the form at the top of this page or book a call.
Unum group income protection: your questions answered
What does group income protection cover?
It pays a percentage of an employee’s salary if they cannot work because of long-term illness or injury, after a waiting period chosen by the employer. Many schemes also include rehabilitation and wellbeing support.
How long does group income protection last?
It depends on the policy term. Some schemes pay until retirement age, others for a fixed period such as two or five years, ending sooner if the employee returns to work.
Is Unum Group an insurance company?
Yes. Unum Group is a large US-listed benefits and insurance provider, and Unum UK is its UK arm, focused on group protection sold through employers.
Can small businesses buy group income protection?
Often yes, although minimum scheme sizes vary by insurer. Some insurers are more open to smaller groups than others, which is why comparing matters.
Do employees pay tax on the benefit?
Yes. The benefit is paid through payroll, so it is subject to income tax and national insurance. Employer-paid premiums are generally an allowable business expense, but check with your accountant.
Are you connected to Unum?
No. We are a broker, not part of Unum or any insurer. We compare the market and explain your options.
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Book a free business protection callThis page is general information from a broker and is not affiliated with Unum. It is not a personal recommendation. Product details and tax rules change; always check current terms.