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Protect · Income protection

Set up group income protection without the benefits admin

When an employee can’t work for months, statutory sick pay in the UK or Illness Benefit in Ireland leaves them exposed. Income protection replaces part of their salary, usually up to 75%, and can fund rehabilitation. Kota handles the setup, admin and renewals.

Benefits / Income protection

Income protection

Active
Members covered
128
Salary insured
75%
Deferred period
26 weeks

Members

  • AMAlice MorganCovered
  • SMSam MurphyCovered
  • JEJamie EllisCovered
  • NDNina DuboisCovered
  • JvDJasper van DijkCovered

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Why offer group income protection?

  • Retention

    Attract and retain the right people

    It sets your offer apart from employers relying on statutory minimums, and shows you’ve thought about what happens when life doesn’t go to plan.

  • Income

    Go beyond statutory sick pay

    Statutory sick pay is £123.25 a week, or 80% of normal weekly earnings if lower. Income protection replaces 50-75% of salary during long absence.

  • Absence

    Reduce the cost of long-term absence

    Insurer-funded rehabilitation, like physio and counselling, often starts before the deferred period ends and shortens absences.

  • Tax

    Tax-efficient for you and your people

    Premiums are deductible against profits, and in standard arrangements there’s no P11D charge for employees.

About groupincome protection

What is group income protection?

Group income protection is employer-funded insurance that replaces part of an employee’s salary when illness or injury stops them working for an extended period. The insurer pays you, and you pass it on through payroll as normal. Standard cases need no individual medical underwriting.

What’s covered

  • Salary50-75% of gross salary
  • Deferred period13, 26 or 52 weeks
  • RehabilitationEarly intervention support
  • Return to workPhased support

Group income protection vs. critical illness cover

Group income protection

Pays
A monthly income, usually 50% to 75% of salary
When
After a waiting period, while illness or injury keeps them off work, up to the policy’s end date

Critical illness cover

Pays
A one-off lump sum
When
On diagnosis of a listed condition, such as cancer, heart attack or stroke

Many employers offer both.

An income whilethey recover.

40.1 million working days were lost to work-related ill health and workplace injury in Great Britain in 2024/25. Income protection keeps your people paid while they get back on their feet.

See pricingBook a demo

How Kota handlesgroup income protection

Instead of chasing quotes, reconciling spreadsheets and hoping renewal doesn’t arrive unannounced, Kota runs income protection from setup to renewal.

Compare

Income protection

ProviderUnumCanada LifeFreedom
Benefit level75%70%75%
Deferred period26 wks13 wks26 wks
Rehab supportIncludedIncludedAdd-on
Per person / mo£14.20£16.90£13.60

Kota went to market · 6 insurers quoted

Who offers groupincome protection?

Insurers you can set up with Kota.

UK, Ireland and Europe

and more

How much does groupincome protection cost?

Most employers pay between 0.5% and 1.5% of gross payroll a year. Here’s what shapes your premium:

  1. 01

    How much salary you insure

    Most policies replace 50-75% of salary. In Ireland, benefit is usually reduced by the State Illness Benefit. Also insuring employer NI and pension contributions adds a little to the premium.

  2. 02

    Your deferred period

    A 52-week deferred period costs considerably less than a 13-week one.

  3. 03

    Your age profile and industry

    Younger, office-based workforces sit in lower risk classes and pay less.

  4. 04

    Your payout term

    Short-term cover (two or five years) costs less than long-term cover to return to work or retirement.

Example scenario

A tech company with 50 office-based employees on an average salary of £45,000, with a 26-week deferred period and 66% salary replacement on a long-term policy, has a payroll of about £2.25 million. At 0.5-1.5%, that’s roughly £11,250 to £33,750 a year, or £225 to £675 per employee.

Illustrative only. Actual quotes depend on your team’s ages, salaries, occupations and claims history.

Tax implications in UK and Ireland

United Kingdom

Premiums are an allowable business expense, with no P11D charge for employees in standard arrangements. Claim payments go through PAYE as normal salary. Under salary sacrifice, the benefit-in-kind is based on the greater of the benefit value or the salary given up.

Ireland

Premiums under a Revenue-approved income continuance scheme are generally deductible, with no benefit-in-kind when you fund the full premium. Claims are taxed through payroll, and employees making personal contributions may claim relief.

“Why can’t everything be this easy?! Everything was easy, both on the admin side and for end users.”

Aisling FogartyNine Dots

How it works in Kota

From cover terms to claims, in three steps.

  • Choose cover and deferred period

    Insure 50-75% of salary, and align the deferred period with the end of company sick pay.

  • Get quotes and enrol

    Insurers price on headcount, age, salaries and industry. Employees are enrolled as a group, with no individual underwriting for standard cases.

  • Kota keeps it current

    Joiners and leavers stay in sync. If someone is likely to be off beyond the deferred period, Kota helps you notify the insurer early. If the claim is accepted, benefit is paid to you and passed on through payroll.

Frequentlyasked questions

What does group income protection pay out?
Usually 50-75% of gross salary, after the deferred period, if an employee can’t work due to illness or injury. In Ireland, this is usually reduced by the State Illness Benefit. The insurer pays you, and you pay it through payroll with tax deducted as normal.
Is group income protection taxable?
Premiums don’t create a benefit-in-kind and are an allowable business expense. Claim payments are taxed through PAYE as normal income. Salary sacrifice arrangements follow different rules.
Does it cover mental health conditions?
Generally, yes. Most policies cover diagnosed mental health conditions such as stress-related illness, anxiety and depression, which are among the most common reasons for long-term absence claims, subject to the policy’s definition of incapacity.
What is the deferred period?
How long someone must be off before payments start, commonly 13, 26 or 52 weeks. Longer means a lower premium. Many employers align it with the end of company sick pay.
What’s the difference between short-term and long-term cover?
Short-term cover pays for a fixed period, typically two or five years. Long-term cover pays until recovery or retirement age and costs more.
How many employees do I need for group income protection?
Most insurers cover groups from three to five employees. Smaller teams may have fewer insurers to choose from, but competitive quotes are still available.

Focus on the outcomes,not the admin

See the plans and the price before you decide. No pressure, no obligation.