Employer Waivers

The worst time to receive surprises related to your group cover is at claims stage, and one of the areas that has thrown up a few surprises is that of employer waivers.

An employer waiver is a rider benefit that can be added to income protection. It allows an employer to insure contributions that it is making in addition to a salary.

An important but often overlooked point is the need to identify what the employer waiver needs to cover:

  • If the employee is paying everything out of their total cost to company package, then there are no additional contributions by the employer and nothing to include in the form of an employer waiver.
  • If the employer is contributing a set percentage and everything, including risk benefits, are coming out of that contribution then that is all that needs to be included in the employer waiver.
  • If the employer is contributing a set percentage plus paying for the risk costs for employees, then they can include the contribution as well as the cost of the risk benefits that will continue in the event of a disability claim, to ensure that they or the member are not out of pocket at claims stage.

Whatever makes up the total employer contribution, please remember to include them all in your employer waiver when calling for quotes.

This doesn’t only apply to new quotes though and it’s worth checking your existing client structures as well so changes can be made at review, if necessary.

Vol. 10 Issue 4

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