What's happened?
On 6 April 2025 the Government will increase employer National Insurance Contributions (NICs) by 1.2 percentage points to 15%.
In addition, the secondary threshold at which employers start paying NICs will be reduced from £9,100 to £5,000 per year.
How will we help your clients?
The Q&As below explain how we’ll address these changes in your clients’ Aviva Group Income Protection policies.
Any differences between our Aviva & ex-AIG portfolio have been detailed below.
What Group Income Protection policies are impacted?
- Existing Group Income Protection policies where the policy insures NICs; and
- New Group Income Protection policies going on risk from 6 April 2025, where the policy insures NICs.
How will these Group Income Protection policies be affected?
We’ll insure the NICs that apply between today and 5 April 2025.
From 6 April 2025 we’ll insure the increased employer NICs.
How will existing unit rated policies within their rate guarantee period be affected?
What does this mean for the Aviva portfolio?
The unit rate will remain unchanged.
Most of the Group Income Protection policies we insure use a unit rate based on total salary roll and there will be no change in premium for these policies.
Some of the Group Income Protection policies we insure use a unit rate based on total benefit. The premiums for these schemes will have an increase as the increased NICs will result in a higher insured benefit. Any premium adjustments will be made at the end of the policy year.
What does this mean for the ex-AIG portfolio?
The unit rate will remain unchanged.
All Group Income Protection policies we insure use a unit rate based on total benefit. The premiums for these schemes will have an increase as the increased NICs will result in a higher insured benefit. Any premium adjustments will be made at the end of the date of refresh period.
Will single premium costed Group Income Protection policies be affected?
What does this mean for the Aviva portfolio?
The rate table will remain unchanged until the next rate review. The premium for our single premium policies is expressed as a rate of benefit for each member. As the changes will increase each member’s benefit on which the price is based, there will be an increase in premium. Any premium adjustments will be made at the end of the policy year.
What does this mean for the ex-AIG portfolio?
The rate table will remain unchanged until the next rate review. The premium for our single premium policies is expressed as a rate of benefit for each member. As the changes will increase each member’s benefit on which the price is based, there will be an increase in premium. Any premium adjustments will be made at the end of the date of refresh period.
Will there be a change to claims already in payment before 6 April 2025?
No. We provide cover for the NICs calculated at the date of incapacity. As a result, there won’t be any change to the benefit payable for:
- Claims in payment
- Claims where the date of incapacity is before 6 April 2025.
What will happen if the date of incapacity occurs on or after 6 April 2025?
Where this occurs, the benefit will take account of the increased NICs.
It takes Aviva to make sure youʼre always fully informed
As always, we want to make sure you know exactly how weʼll support you and your clients as times change. If you have any questions, please get in touch with your usual Aviva contact or email us.