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Aviva Group Income Protection

February 2011 Aviva: GIP

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Aviva’s latest changes to its existing group income protection (GIP) plans include:

• A new escalation rate. Benefits can rise in line with the Retail Prices Index (RPI), capped at 2.5% a year.
• Stress counselling helpline. This gives employees access to support from counselling professionals 24/7.
• Bereavement helpline. Offers support to relatives and partners of GIP customers who have died or to those who have suffered bereavement themselves.
• Legal helpline. This offers access to legal advice on any issue.
• GP helpline. This gives employees and their families access to legal advice on any issue at any time.
• The new EAP (employee assistance programme) benefits are included at no extra cost. Employers can also extend the support available to their employees by upgrading their cover to one of:
o Extended EAP. Includes additional debt management and online information for employees and managers.
o Full EAP. Offers all the above services.

EAP benefits can be extended to all employees, not just GIP members. Aviva also offers its occupational health and private medical insurance benefits to complement its GIP benefits. The GIP covers from five employees upwards and offers:

• Benefits of up to 80% of earnings, to a maximum benefit of £350,000 a year.
• Deferred periods of 13, 26, 28, 41, 52 or 104w.
• Benefit to retirement age or for a limited period.
• Once only underwriting.
• A pay direct option (this pays benefits direct to the claimant, which means lower administration costs during long term absences) and lump sum options.
• Dedicated rehabilitation case managers.
Plus points: A good range of EAP benefits added, but at no extra cost for GIP members and which can be offered to non-GIP employees too. Benefits can now be linked to RPI.
Not so plus points: RPI linking for benefits is useful (although average earnings is arguably a better link) but the 2.5% annual ceiling is low and some way below current inflation levels; These are relatively minor changes too—does GIP need more radical change if it is to thrive?; Many firms are now looking hard at their whole employee benefits package and legislative changes, especially around continuing to employ older workers, can mean that GIP costs will rise; Where that happens, employers will need convincing that GIP is not just still necessary but also that it offers the right value and most practical benefits.
Website: http://www.aviva.co.uk.
Rating (max 10): Innovation: 7. Overall: 7. Silver.

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