Employers understand group income protection (GIP) best when they have a financial adviser or employee benefits consultant as their main source of information, but otherwise ignorance is widespread, according to Canada Life Group Insurance statistics.
Over two fifths of employers who use these as their main source of information believe they have a good understanding of GIP.
Employers were more likely to consider the inclusion of GIP if they understood what the product offered (24% vs. average of 15%) - however, clear understanding of the employee benefit landscape is lacking in the business community.
Over a quarter (27%) of HR professionals surveyed confess they know little about GIP, with a further 32% unaware of the cost of the product or the value it could bring to their organization. That leaves only 40% of HR advisers confident in their knowledge of GIP.
The picture worsens among companies that do not currently offer GIP, with only 19% of respondents (including those outside of HR) claiming a sound grasp of the product and its value.
Paul Avis, Marketing Director at Canada Life Group Insurance, commented: "The lack of GIP knowledge in businesses may seem high, but is perhaps less surprising when you consider our research also showed that 18% of HR professionals do not understand Group Life Assurance, which we would consider our simplest product.
"Financial advisers are in a unique position to deliver the gospel of Group Income Protection right on the doorstep of companies up and down the country. Trusted and relied upon by their clients, they can use their knowledge and experience of Group Income Protection to really bring the benefits to life for the key decision makers."
In contrast to the 41% of businesses who turn to financial advisers and employee benefit consultants as a primary source of information and boast a good understanding of GIP, accountants and legal advisors only generated good understanding in 35% and 29% of businesses respectively.
