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Ill Health Liability Insurance
Early retirements due to ill health generate significant costs and volatility across LGPS funds, at both whole fund and employer level.
With over a 10% chance of an LGPS member retiring early due to ill health, you need protection against having to pay these potentially catastrophic costs.
How we can help
An employer recently had to pay an ill health early retirement claim of £793k – we know many employers simply can’t afford this.
Our market leading Ill Health Liability Insurance eliminates this risk, covering the value of any valid claim up to £4.5m. Hundreds of LGPS employers have already taken out the insurance and are no longer exposed.
Whether you’re an administering authority or an individual employer, get in touch now for a free, no obligation quote and experience analysis of your fund to find out how much risk you’re exposed to and how easy it is to eliminate it.
What are the costs of ill health early retirement?
Watch our short video about IHLI to find out more about the costs of ill health early retirement and the protection on offer.
Ill Health Liability Insurance
The cost of ill health early retirements can be catastrophic for many LGPS employers. As public sector bodies’ finances continue to be scrutinised, Ill Health Liability Insurance protects small and medium sized employers from unaffordable strain cost bills, deficit increases and contribution hikes.
Last year, over 4,000 members within the Local Government Pension Scheme took early retirement due to ill health. Who had to pay for this extra cost? Their employer. Watch our short video above (with or without sound) to find out how this can affect you.
What is Ill Health Liability Insurance?
Ill Health Liability Insurance (IHLI) was developed at the request of LGPS funds to protect small and medium sized employers from the risk of the potentially unaffordable cost of unexpected ill health early retirements.
Last year, over 3,600* members within the Local Government Pension Scheme took early retirement due to ill health. Who had to pay for this extra cost? Their employer. Watch our short video above (with or without sound) to find out how this can affect you.
Over 1,000 LGPS employers (covering over 47,000 members) throughout the UK are now covered by Legal & General’s IHLI, helping them to mitigate against the potential huge unexpected costs demonstrated above.
*This figure represents the number of ill health early retirements across the LGPS. The figure comprises of 2,875 cases from England & Wales in 2018/19 (ref: Table 6) and 773 from Scotland in 2017/18. No 2018/19 figures were available for Scotland at the time.
Technical information
Please refer to Legal and General's series of technical guides to help you understand their Ill Health Liability Insurance plan and policy.
L&G's Technical Guide for Local Government Pension Schemes
L&G's Technical Guide for Academies
Ill Health Liability Insurance claims process - a guide for those who are ready to make a claim
Get in touch
If you would like to find out more please don't hesitate to contact Martin.
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