In the lumi reward benchmark, 2× salary is the most common level of group life assurance, at 50.2% (n = 239, 2026 H1), and 35.7% of UK organisations offer income protection (18.6% + 10.0% + 7.1%, n = 269, 2026 H1).
Key findings
- 2× salary is the common level of life assurance for the main population, at 50.2% (n = 239). 3× is an alternative, at 23.0%.
- Not offering spouse/partner life cover is the common answer, at 71.0% (n = 269). 29.0% offer it (20.1% employer-paid + 8.9% voluntary).
- Not offering income protection is the common answer, at 64.3% (n = 269). 35.7% offer it in some form (18.6% long-term only + 10.0% both + 7.1% short-term only).
- Where income protection is offered, the common waiting period is 4–13 weeks (46.2%, n = 91) and the common salary replacement rate is 66–75% (38.5%, n = 91).
- 22.2% actively use the rehabilitation and early-intervention services in their group income protection (n = 72). 31.9% are unaware of them.
- A fixed lump sum is the common form of critical illness cover, at 40.7% (n = 59).
- 23.8% let employees flex up group life or income protection cover at their own cost (13.8% for one cover + 10.0% for both, n = 269).
About the data
This paper reports how UK employers answered lumi's questions on group risk benefits: life assurance, income protection and critical illness. The lumi reward benchmark covers 269 UK organisations across 14 sectors and five size bands. Data was collected in the 2026 H1 collection window. Each figure gives its base (n): the number of organisations that answered that question. Percentages are rounded to one decimal place, so a distribution can add up to 100.1%. Figures here are national. Sector and size comparisons are available to lumi members. See how lumi works for the method.
The legal context
Group life assurance, income protection and critical illness cover are not set by statute.
The statutory provision closest to this area is Statutory Sick Pay (SSP). From 6 April 2026, SSP is payable from the first full day of sickness, and the lower earnings limit has been removed. SSP is the lower of £123.25 a week and 80% of normal weekly earnings, for up to 28 weeks. Income protection is an insured benefit that an employer may choose to add alongside sick pay.
What life assurance multiple do UK employers provide?
The benchmark asked, What life assurance cover is provided for the main population (multiple of salary)? (n = 239). "Not applicable" answers are excluded from the base.
| Cover for the main population | % of base (n = 239) | Prevalence |
|---|---|---|
| 2× | 50.2% | common |
| 3× | 23.0% | alternative |
| 4× or more | 19.7% | rare |
| 1× | 7.1% | rare |
2× salary is the common answer, at 50.2%. 3× is an alternative, at 23.0%. 4× or more is rare, at 19.7%, and so is 1×, at 7.1%. The "rare" label for 4× or more follows the benchmark's 20% threshold, and 19.7% sits just below it. Taken together, 92.9% provide cover of 2× or more (50.2% + 23.0% + 19.7%), and 42.7% provide 3× or more (23.0% + 19.7%).
Higher multiples pay more to dependants and cost more to insure. They can also take an individual's sum assured above the insurer's free cover limit, which brings medical evidence requirements for some employees. Lower multiples cost less and leave more of a household's protection to the employee's own arrangements. The question covers the main population, so it does not show whether senior grades receive a different multiple.
The benchmark also asked, Is spouse/partner life cover offered? (n = 269). Not offering it is the common answer, at 71.0%. Employer-paid cover is an alternative, at 20.1%, and voluntary cover is rare, at 8.9%. In total, 29.0% offer spouse/partner life cover in some form (20.1% + 8.9%).
Employer-paid cover adds a second insured life to the employer's costs. Voluntary cover places the premium with the employee, while the employer arranges access. Organisations answering "No" leave partner cover to individual employees.
How many UK employers offer income protection?
The benchmark asked all organisations, Does your organisation offer income protection? (n = 269).
| Answer | % of base (n = 269) | Prevalence |
|---|---|---|
| No | 64.3% | common |
| Long-term only | 18.6% | rare |
| Both | 10.0% | rare |
| Short-term only | 7.1% | rare |
Not offering income protection is the common answer, at 64.3%. Each form of cover is rare on its own. Taken together, 35.7% offer income protection in some form (18.6% + 10.0% + 7.1%). 28.6% offer long-term cover (18.6% + 10.0%), and 17.1% offer short-term cover (10.0% + 7.1%).
The two forms answer different risks. Long-term income protection pays a share of salary during an extended absence, for as long as the policy terms allow. Short-term cover pays for a shorter, fixed period.
Income protection also appears as one item on lumi's benefits list, Which of the following benefits are currently offered to employees?, reported in the private medical insurance and health benefits paper. That question has different wording, different answer options and its own base, so its figure is a separate measure from the one above.
Where income protection is not offered, an employee's income during a long absence depends on occupational sick pay, SSP for up to 28 weeks, state benefits and any personal cover. The trade-off is premium cost against the income gap an employee faces once sick pay ends.
What is a typical income protection waiting period and replacement rate?
Where income protection is offered, the benchmark asked, If income protection is offered, what is the typical waiting period? (n = 91).
| Waiting period | % of base (n = 91) | Prevalence |
|---|---|---|
| 4–13 weeks | 46.2% | common |
| <4 weeks | 26.4% | alternative |
| 14–26 weeks | 24.2% | alternative |
| 27 weeks or more | 3.3% | rare |
4–13 weeks is the common answer, at 46.2%. Under 4 weeks (26.4%) and 14–26 weeks (24.2%) are both alternatives. 27 weeks or more is rare, at 3.3%. In total, 72.6% have a waiting period of 13 weeks or less (46.2% + 26.4%), and 27.5% have one of 14 weeks or more (24.2% + 3.3%).
The waiting period, or deferred period, is the time between the start of an absence and the first income protection payment. It shapes cost: a longer waiting period generally means a lower premium, because fewer absences last long enough to reach it. It also sets how much of an absence the employer's own sick pay has to carry. A waiting period can be set so that benefit starts when occupational sick pay ends, leaving no gap in income. Every band except "27 weeks or more" ends before SSP's 28-week maximum. The question does not separate short-term from long-term cover, so the shorter bands may include both.
It also asked, If income protection is offered, what is the typical salary replacement rate? (n = 91).
| Salary replacement rate | % of base (n = 91) | Prevalence |
|---|---|---|
| 66–75% | 38.5% | common |
| 50–65% | 37.4% | alternative |
| 76%+ | 18.7% | rare |
| <50% | 5.5% | rare |
66–75% is the common answer, at 38.5%. 50–65% is an alternative, at 37.4%. 76%+ (18.7%) and under 50% (5.5%) are both rare. Together, 57.2% have a replacement rate of 66% or more (38.5% + 18.7%), and 42.9% have one of 65% or less (37.4% + 5.5%).
The replacement rate sets the share of salary an absent employee receives from the policy. A higher rate narrows the drop in income and costs more to insure. A lower rate costs less and leaves a larger drop, which the employee meets from savings, state benefits or personal cover.
Do employers use the rehabilitation services in group income protection?
Group income protection can include services that support a return to work. The benchmark asked, If you offer group income protection, do you actively use the rehabilitation and early-intervention services included in it? (n = 72). "Not applicable" answers are excluded from the base.
"Rarely used" is the common answer, at 45.8%. "Unaware of services" is an alternative, at 31.9%, and so is "Actively used", at 22.2%. Together, 77.7% do not report active use (45.8% + 31.9%).
These answers describe how organisations use cover they already hold. 31.9% chose "Unaware of services", the option offered for not knowing what the policy includes. 45.8% chose "Rarely used", the option for services that are known but seldom called on.
Using the services depends on process. The insurer needs to hear about an absence early, which means HR and line managers agreeing when to refer, and the employee agreeing to take part. The trade-off is between that administrative effort and the support the services are designed to provide.
What level of critical illness cover do UK employers provide?
The benchmark asked, What level of critical illness cover is provided (lump sum or salary multiple)? (n = 59).
A fixed lump sum is the common answer, at 40.7%. 1x salary is an alternative, at 37.3%, and so is 2x+ salary, at 22.0%. In total, 59.3% link critical illness cover to salary (37.3% + 22.0%). The base is small, so each answer carries more weight in the percentages. The question describes the level of cover among organisations that answered it, not how many organisations provide critical illness cover at all.
A fixed lump sum pays every covered employee the same amount on a valid claim. It is simple to explain, and its cost does not move with pay. A salary multiple ties the payment to earnings, so higher earners receive more and the cost rises with the payroll.
The benchmark also asked all organisations, Can employees flex up group life or income protection cover at their own cost? (n = 269). "No" is the common answer, at 76.2%. "Yes one", where employees can flex up one of the two covers, is rare at 13.8%. "Yes both" is rare at 10.0%. In total, 23.8% allow employees to flex up at least one cover (13.8% + 10.0%). The base includes organisations that do not offer income protection.
Flexing up lets an employee buy cover above the core level through the employer's group arrangements. For the employer, the added cost is mainly administration, since the employee pays the extra premium. For employees, it adds choice where their needs exceed the core benefit.
What the data means for reward decisions
A rare answer is not a wrong one: prevalence words describe how often an answer was chosen, not whether it suits a given organisation.
Core cover or employee choice. An organisation can set a higher core level of cover for everyone, or a lower core level with the option to buy more. 2× is the common life assurance multiple (50.2%, n = 239), and 23.8% allow employees to flex up (13.8% + 10.0%, n = 269). What is the core multiple meant to do: protect a typical household, or set a floor that employees build on? Can employees who need more buy it?
Whether to insure long absence. Not offering income protection is the common answer (64.3%, n = 269). What happens to an employee's income after occupational sick pay and SSP end? Is that outcome a deliberate choice or a default?
How the waiting period and sick pay fit together. When does occupational sick pay end, and does income protection begin at that point? Is there a gap, an overlap, or neither? What would a longer waiting period save in premium, and what would it add to the cost of sick pay?
How much salary to replace. What income would an employee on a long absence have at each replacement rate, once state benefits are taken into account?
Using what the policy includes. 77.7% do not report active use of rehabilitation and early-intervention services (45.8% rarely used + 31.9% unaware, n = 72). Does the HR team know which services the policy includes? At what point in an absence is the insurer told, and who decides?
Equal payment or pay-linked payment. For critical illness cover, a fixed lump sum is the common answer (40.7%, n = 59). Is each benefit meant to pay the same sum to everyone, or to reflect what each employee earns? Where cover extends to a spouse or partner, who is expected to pay for it?
Frequently asked questions
What percentage of UK employers offer group income protection? In the lumi reward benchmark, 35.7% of UK organisations offer income protection in some form (18.6% long-term only + 10.0% both + 7.1% short-term only, n = 269). Not offering it is the common answer, at 64.3%. 28.6% offer long-term cover (18.6% + 10.0%) and 17.1% offer short-term cover (10.0% + 7.1%).
What is the most common life assurance multiple for UK employees? In the lumi reward benchmark, 2× salary is the most common multiple for the main population, at 50.2% (n = 239). 3× follows at 23.0%, 4× or more at 19.7% and 1× at 7.1%. Taken together, 92.9% provide 2× or more (50.2% + 23.0% + 19.7%).
How long is a typical income protection waiting period? In the lumi reward benchmark, 4–13 weeks is the most common waiting period where income protection is offered, at 46.2% (n = 91). Under 4 weeks is next at 26.4%, then 14–26 weeks at 24.2% and 27 weeks or more at 3.3%. In total, 72.6% wait 13 weeks or less (46.2% + 26.4%).
How much salary does UK income protection replace? In the lumi reward benchmark, 66–75% of salary is the most common replacement rate, at 38.5% (n = 91). 50–65% is close behind at 37.4%, while 76%+ (18.7%) and under 50% (5.5%) are both rare. Together, 57.2% replace 66% or more (38.5% + 18.7%).
Do UK employers offer life cover for a spouse or partner? In the lumi reward benchmark, 29.0% of UK organisations offer spouse/partner life cover (20.1% employer-paid + 8.9% voluntary, n = 269). The common answer, at 71.0%, is that no such cover is offered. Where it is, the employer either insures a second life at its own cost or arranges access and leaves the premium with the employee.
What level of critical illness cover do UK employers provide? In the lumi reward benchmark, a fixed lump sum is the most common level of critical illness cover, at 40.7% (n = 59). 1x salary follows at 37.3% and 2x+ salary at 22.0%, so 59.3% link the cover to salary (37.3% + 22.0%). With only 59 organisations answering, a single response moves the percentages more than elsewhere in this paper.
Notes
- Base, "Not applicable" handling and rounding are as described in "About the data". Each figure uses the base of its own question.
- Life assurance cover for the main population excludes "Not applicable" from the base. 30 organisations answered "Not applicable"; the base is 239.
- Use of rehabilitation and early-intervention services in group income protection excludes "Not applicable" from the base. 19 organisations answered "Not applicable"; the base is 72.
- For the other questions, any "Not applicable" answers sit inside the base.
- Combined figures are sums of listed percentages within a single question, with the parts shown each time. Prevalence words apply to single answers, not to combined figures.
Data appendix
Every question on this page, with its base and full distribution, as a spreadsheet: download the CSV.
All national figures used in this paper, as recorded in the lumi reward benchmark (collection window 2026 H1).
What life assurance cover is provided for the main population (multiple of salary)?
Base: 239 organisations · "Not applicable" excluded from base
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| 2× | 50.2% | 120 | common |
| 3× | 23.0% | 55 | alternative |
| 4× or more | 19.7% | 47 | rare |
| 1× | 7.1% | 17 | rare |
Does your organisation offer income protection?
Base: 269 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 64.3% | 173 | common |
| Long-term only | 18.6% | 50 | rare |
| Both | 10.0% | 27 | rare |
| Short-term only | 7.1% | 19 | rare |
If income protection is offered, what is the typical waiting period?
Base: 91 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| 4–13 weeks | 46.2% | 42 | common |
| <4 weeks | 26.4% | 24 | alternative |
| 14–26 weeks | 24.2% | 22 | alternative |
| 27 weeks or more | 3.3% | 3 | rare |
If income protection is offered, what is the typical salary replacement rate?
Base: 91 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| 66–75% | 38.5% | 35 | common |
| 50–65% | 37.4% | 34 | alternative |
| 76%+ | 18.7% | 17 | rare |
| <50% | 5.5% | 5 | rare |
What level of critical illness cover is provided (lump sum or salary multiple)?
Base: 59 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Fixed lump sum | 40.7% | 24 | common |
| 1x salary | 37.3% | 22 | alternative |
| 2x+ salary | 22.0% | 13 | alternative |
Can employees flex up group life or income protection cover at their own cost?
Base: 269 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 76.2% | 205 | common |
| Yes one | 13.8% | 37 | rare |
| Yes both | 10.0% | 27 | rare |
Is spouse/partner life cover offered?
Base: 269 organisations
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| No | 71.0% | 191 | common |
| Employer-paid | 20.1% | 54 | alternative |
| Voluntary | 8.9% | 24 | rare |
If you offer group income protection, do you actively use the rehabilitation and early-intervention services included in it?
Base: 72 organisations · "Not applicable" excluded from base
| Answer | % of base | Organisations | Prevalence |
|---|---|---|---|
| Rarely used | 45.8% | 33 | common |
| Unaware of services | 31.9% | 23 | alternative |
| Actively used | 22.2% | 16 | alternative |
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David Whitfield, Group risk benefits: UK benchmark 2026. lumi, collection window 2026 H1. https://lumihr.co.uk/research/group-risk-benefits-2026Last reviewed 20 September 2026 · Figures describe organisations in the lumi reward benchmark, not a random sample of UK employers. Every figure on this page states the question asked and the number of organisations that answered it.