In a group income protection insurance policy, who initially receives any benefits?

In a group income protection insurance policy, the benefits are typically paid to the employer rather than directly to the employee. This arrangement means that the employer is responsible for managing the claim and distributing any funds according to the terms of the policy and the employment contract.

When the benefits are paid to the employer, they are generally taxable via Pay As You Earn (PAYE), which means the employer handles any necessary tax deductions before passing on the payments to the employee. This approach can ensure that the payouts align with the payroll process, simplifying the administration for both the employer and the employee.

In contrast, when benefits go directly to the employee or to a beneficiary, these are often not part of the structured approach provided by group income protection policies, and they may involve different tax implications or requirements for individual claims processing. The involvement of the insurance provider is for policy management rather than receiving benefits directly, which is why other options do not align with the standard operation of these insurance products.