Opinions and thoughts on the PHI tax changes and the new income protection benefit options seem to be extremely varied, with a real possibility that further changes may be on the cards with regards to benefit options and terms in the future.

Very few people seem to have a strong singular view on what the “right” choice is and it seems as though the sensible thing to do would be to take each employer as a separate case when considering what is best for them and their employees. Their range of salaries, ideal replacement ratio and, of course, affordability all need to be considered in the process and we are working on some tools that will hopefully assist you with this.

We’ll be releasing a simple Excel tool that will allow you to compare the impact on benefits of the new tax modified scales that three of our insurers are offering. We’ll then expand this to include a comparison against a flat 75% benefit as well as the 75% scaled benefits that we’re used to. Look out for these over the next few weeks.

Our position at this stage with regard to your upcoming reviews is to continue on the same benefit structure as your clients currently enjoy, providing comparatives from the insurers that offer the same structure. This may mean that you only receive three rates from us in certain instances but you will always receive comparatives and as many as possible on a like for like basis to assist you in the review process.

If you have specific questions please do not hesitate to contact your Associate or the office for assistance.

Yours sincerely,

The TSA Team

You’ll find all back issues of TSA Connect by visiting our blog and you can do that by clicking here. All information provided in TSA Connect newsletters is intended to inform and explain, but please remember to always check the current terms on policies when considering options and advising clients.