Multiflex GIP.

Multiflex is part of our Group Income Protection (GIP) proposition, Workplace Recovery for flex benefits.

It can provide early intervention and rehabilitation plus a monthly income for members who are absent from work because of a long term illness or injury.

Multiflex gives the member the choice of selecting either:

• a limited benefit payment period or the cover termination date set for the policy (this is normally the later of the member reaching their 65th birthday or state pension age (SPA); or
• to vary the percentage of salary insured.

Giving employers greater control over their costs without restricting the level of cover available to their employees

What makes Multiflex different?

Traditional flex schemes only allow employees to increase the proportion of salary insured above the standard or minimum level of cover. There is usually no choice to determine the maximum length of time the income protection benefit will be payable.

With our Multiflex plan, members have several choices to choose from to suit their lifestyle, giving them greater flexibility.

This new dimension can make the choice of benefit much more relevant to employees. It also allows employers to manage their costs without restricting the cover they offer.

We believe this adds significantly to the options available when designing a new flexible benefit scheme and provides an opportunity to refresh an existing arrangement.

How it works

Multiflex is available for all Group Income Protection schemes with over 100 members. The scheme needs to be set up with a core or standard benefit level of not less than 40% salary with a limited term period of at least two years.

A member may choose to increase the percentage of salary insured in ‘steps’ agreed with the employer (up to a maximum of 75% salary) and/or extend the maximum term of the benefit to their state pension age (or a shorter period built into the scheme design).

At the start of the scheme or when an employee first becomes eligible to join, they may select any level of cover within the scheme range.

At later renewal dates or when the employee undergoes a lifestyle event, the benefit entitlement may be increased by one ‘step’.

A ‘step’ may either be:

• the difference between the existing percentage of salary benefit and the next highest; or
• a move from limited to a period taking them to state pension age.

All increases are only possible if the employee is not incapacitated and should they wish to extend the benefit term at the renewal date they must also complete a medical declaration consisting of five questions.

Age related rate tables

A unit rate will be used to calculate the cost of the core or standard benefit level.

Additional premiums for increasing benefit above the core level will be calculated on an age related rate table.

If the term of the benefit is extended, all benefit will be costed using a second table of age related rates.

What are the advantages?

All employees are provided with the limited term ‘core’ element. However there is scope to enjoy cover with a high percentage of salary, potentially payable until the cover termination date set for the policy (this is normally the later of the member reaching their 65th birthday or state pension age (SPA).

Depending on how the scheme is designed, employees can reduce their cover to a minimum and spend the savings on other benefits, or choose to have a generous level of benefit that will help protect them for the remainder of their working lives if they are incapacitated.

The range of choice is much greater than is the case with current flex benefits.