Canada Life Group Insurance has announced changes to its group income protection (GIP) proposition ahead of the implementation of the Welfare Reform Act. The Act is due to come into force on October 28 and introduces a new employment and support allowance (ESA) to replace the state incapacity benefit and income support.
GIP benefits that take the current state incapacity benefit into account will need to be altered. As claimants are likely to receive less under the ESA than from incapacity benefit, Canada Life will ensure each GIP claimant subject to the ESA system will receive up to 90% of their previous take home pay.
Marion Ware, head of marketing at Canada Life Group Insurance, says: "With the ESA due to come into play in October, those deemed unable to work are likely to be entitled to a smaller benefit allowance."
Income protection insurance: News update: June 2008