Group Critical Illness Cover pays a lump sum benefit should a member of staff suffer a serious illness. The three most common conditions insurers pay out a claim for are cancer, heart attacks and strokes.
Group Critical Illness Insurance covers at least 11 major or critical illnesses, with the most common being:
As well as these ‘core’ illnesses, you can opt for your policy to cover an additional 25 or so serious illnesses, which includes conditions such as:
These will all be detailed in your policy documents.
Children of employees are typically covered for free up to the age of 18 for a set of specific child-related critical illnesses. You can also opt to include workers’ spouses and civil partners in Group Critical Illness Cover, but this will be at an additional cost.
Total and Permanent Disability is often an additional option on a plan and does not cover an illness per se but covers an employee should they be unable to work in their own occupation as a result of being made totally and permanently disabled. This might be through illness or injury.
Cancer makes up the bulk of Group Critical Illness claims. According to Cancer Research UK, there were 359,960 new incidences of cancer in 2015 and someone is diagnosed with cancer every 2 minutes.
1 in 2 of us alive today born after 1960 will get cancer at some point in their lives.
Meanwhile, according to the British Heart Foundation:
It is important to recognise that not all instances of the above will result in a successful claim, as policies usually pay out on the occurrence of a condition at or above a set severity as defined in the policy’s terms.
However, the above statistics give you an idea of how widespread serious health problems are within the general population.
As well as providing cover for your employees against cancer, heart attack, strokes and a range of other serious illnesses, there are a number of benefits to getting cover.
The Chartered Institute of Professional Development undertook a survey which found 54% of people currently looking for a new job are looking for better pay or benefits, citing this as the main reason for their move.
For employers, an employee Critical Illness Insurance scheme has the potential to improve the quality of the business.
An impressive employee benefits package can:
One other option to consider that may be more appropriate for your company and your employees is Group Income Protection.
Rather than paying out a cash lump sum in the event of an employee falling ill, Group Income Protection pays a proportion of the employee’s wages into the company should they be out of work, which you then distribute to the individual as a form of sick pay.
Company Critical Illness Insurance only covers a small number of very serious illnesses – the maximum illnesses covered by the market is fewer than 45. Group Income Protection, on the other hand, will cover your workers for anything that medically prevents them from doing their jobs.
The cost of Company Critical Illness Insurance depends on a variety of factors, with the major ones being:
It’s very hard to provide estimates as to the cost of Group Critical Illness Cover because it depends largely on the data you provide on the employees you’re looking to cover.
If you need some help please do not hesitate to pop us a call on 02084327333 or email firstname.lastname@example.org.
Head of Employee Benefits at Drewberry
When you purchase a Group Critical Illness policy, it’s taxed differently from the Critical Illness Cover you’d take out as an individual because individual cover is paid for using income you’ve already had tax and National Insurance deducted from.
However, when an employer takes out this cover on behalf of its employees, Group Critical Illness Insurance is usually considered a business expense you can reclaim against corporation tax.
As well as the premiums being tax-deductible for your company, there’s no income tax on Critical Illness Insurance payouts for your employees, either.
As there’s no tax to pay on the premiums or the payout, it’s important to consider that, for your employees, generally Group Critical Illness Cover is a taxable benefit in kind (P11D benefit).
This means they’ll have to pay tax on the premiums you’re paying on their behalf.
When it comes to employee benefits, including Group Critical Illness Cover, it’s time-consuming and often quite difficult to get cover by yourself. We are here to help make sure you compare the whole UK market and set-up the most appropriate cover at the most competitive premium.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.
If you are reviewing an existing scheme or looking to set-up a new policy we are in a great position to help.
If you need help please don’t hesitate to pop us a call on 02084327333 or email email@example.com.
Director at Drewberry
I had the pleasure of dealing with Jake Mills in organising my insurance. Jake was fantastic to deal with — his patience and understanding really helped.