Group Critical Illness Cover will pay out a tax-free cash lump sum should an employee suffer a serious illness such as cancer, heart attack or stroke whilst working for your business. The payout is typically between 1 and 5 times an employee’s annual salary and most policies cover around 12 serious conditions as standard.
The payout can help with everyday expenses as well as covering the cost of any lifestyle changes that may be needed due to a serious medical condition.
Do We Need This Insurance?
Everyone faces a very real risk of critical illness during their working lives.
Offering Group Critical Illness Cover sends a clear signal that you value your employees and are there to support them when they need it most.
Furthermore, an impressive employee benefits package can:
- Attract new employees
- Improve employee retention and engagement
- Reduce stress and associated employee absenteeism.
Benefits For Employees
Our individual protection survey found only 9% of workers surveyed had personal Critical Illness Cover. Anything employers can therefore do to close this protection gap can make a big difference.
Meanwhile, when it comes to the payout, employees can use it as they see fit, perhaps:
- Adapting their home to accommodate a new disability.
- Paying for medical treatment potentially not yet provided by the NHS due to cost, such as cutting-edge cancer drugs.
- Covering the cost of medical / mobility equipment.
- Repaying a mortgage.
- Staying afloat financially if the condition prevents them from working.
Which Serious Illnesses Are Covered?
As part of ‘core’ cover, insurers cover around 12 conditions. The most common are:
- Heart attacks
- Kidney failure
- Motor neurone disease
- Parkinson’s disease
- Alzheimer’s disease
- Major organ transplant
- Surgery to fit coronary artery bypass grafts
- Creutzfeldt-Jakob Disease (CJD).
As well as these ‘core’ illnesses, you can choose to cover an additional 20-25 or so conditions for an extra premium. Conditions under this umbrella include:
- Aplastic anaemia
- Bacterial meningitis
- Benign brain tumour
- Permanent and irreversible blindness / deafness
- Loss of limbs.
The conditions a policy covers and their definitions will vary from insurer to insurer. While this information will be in your policy documents, it can be in complicated medical jargon. It may therefore be beneficial to ask your adviser for assistance.
Adding Total Permanent Disability
Total and Permanent Disability is another additional option.
It covers staff should they be unable to work in their own occupation as a result of becoming totally and permanently disabled. This might be through sickness or injury.
How Much Does Group Critical Illness Insurance Cost?
Every business is unique. As such, it is difficult to estimate the cost of Group Critical Illness Cover without doing research for your business.
Your premiums will depend on:
- The age of your employees
- The number of employees covered
- The level of cover you opt for (i.e. multiples of salary)
- Whether you choose coverage for ‘additional’ critical illnesses.
As an illustration and very rough guide, we’ve laid out insurance quotes for two different businesses in the table below.