In anticipation of future Welfare Reform changes, BUPA has amended its Group Income Protection product so that individuals can receive a maximum benefit of 75% of their income, regardless of any state incapacity benefit entitlement.

Currently, the norm in the industry is for maximum Group Income Protection (GIP) benefit payouts to be reduced by an amount equivalent to a single person’s state incapacity benefit entitlement.

Under new Welfare Reform rules, which are due to take effect next year, state benefits are likely to be lower and harder to obtain. Some new claimants may no longer qualify under the revised criteria, whilst others may find that benefit levels are lower than they are currently for existing claimants in similar circumstances.

BUPA is the first Group Risk provider to address these imminent changes. The new simple formula for GIP will make it easier for employers to communicate the benefits they provide to their employees – and the value of those benefits. In short, employees will receive a straight 75% maximum benefit from BUPA, regardless of any state benefit entitlement.

Lee Lovett, head of sales at BUPA Group Risk, said:  “The imminent Welfare Reform changes not only increase the need for income protection insurance but also provide an ideal opportunity to review and further simplify product and benefit design. In this regard, BUPA is taking a market leading position.

“The state benefit changes each year, so nobody can be sure what their scheme benefit is from one year to the next.  Just to add to the confusion, the state also describes incapacity benefit in weekly terms whereas insurers use the annual equivalent.“

Lovett adds: “We believe group income protection is sometimes held back by its apparent complexity. At BUPA we are determined to make it as simple as possible so that people can appreciate the value of the cover it provides.”

Where clients have traditionally opted for a GIP benefit level that is lower than the maximum 75% of income, because they wanted to take any state benefit entitlement into account, BUPA will not insist on any changes to this level. However, they will be offered future quotations based on both the lower and maximum benefit options.

 - ENDS - 

For more information please contact

Suzanne Clarkson

BUPA Corporate Communications


0207 656 2667 


BUPA is the UK market leader in health and care with a strong international presence. Established in 1947, it has over 8 million customers in 190 countries and more than 40,000 employees. Its main interests are health insurance, care homes for older people and young disabled, health assessments, workplace health and childcare services. BUPA Travel offers a bespoke travel insurance service. Sanitas in Spain, HBA and Mutual Community in Australia, IHI in Denmark and AMEDEX in the US are all part of the BUPA Group which also has centres in Hong-Kong, Thailand and Saudi Arabia. BUPA is a company limited by guarantee and does not have a share capital. As a result, it can focus on its customers, helping them to live longer, healthier lives and can reinvest all of its profits to do this – this is the dividend that BUPA provides.

Healthcare Republic does not have an editorial influence or input in to these press releases. The views expressed within these documents are not endorsed by Healthcare Republic or Haymarket Medical Publications Limited.

Enquiries should be directed to any contacts listed within the press releases.


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