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International Group Critical Illness Cover pays a tax-free lump sum to an employee if they’re diagnosed with a serious illness specified in the policy. Cancer, heart attack and stroke are usually the core conditions, alongside a shorter or longer list of others depending on how the policy is built. It provides financial breathing room at a time when employees need it most.
A standard UK scheme is built around UK-resident employees, and it may not adequately cover staff living abroad, working in higher-risk locations, or moving between countries as part of their role. That’s the gap International Group Critical Illness Cover is designed to close.
This page covers what it is, how it differs from a domestic scheme, and what to think through when you’re setting it up for a globally mobile workforce.
The mechanics of an International Group Critical Illness Cover (IGCIC) policy are the same as domestic UK policy. If an employee is diagnosed with one of the conditions listed in the policy, and meets the criteria set out in the policy wording, they receive a tax-free lump sum; typically set as a multiple of salary (in the same way Group Life Insurance usually is).
Core cover on most policies protects against 10 to 12 serious illnesses, most commonly cancer, heart attack, stroke and a small number of other major conditions. Many policies also offer an extended list of 20 to 25 further conditions for an additional premium, covering things like loss of limbs and other serious but less commonly claimed events.
Exactly what’s included, and the severity an illness needs to reach to qualify, is set out in the policy wording rather than being standard across the market, so it’s worth checking the specific terms rather than assuming coverage.
When it comes to an international policy, the difference is whether the policy responds at all for someone based outside the country the scheme was designed for, and how diagnosis and claims work when the employee isn’t being treated in a UK hospital.
The conditions a Group Critical Illness policy covers and their definitions will vary from insurer to insurer. While this information will be in your policy documents, it’s often shrouded in medical and insurance jargon, which is why it’s a good idea to work with a specialist adviser (like us) who can decode the lingo and find you the right policy.
Joe Toft
Senior Employee Benefits Consultant
You probably need a dedicated International Group Critical Illness policy if you have employees living and working outside the UK long-term, since a domestic scheme’s assumptions about diagnosis, definitions and underwriting weren’t built with that in mind, and a claim could be delayed or disputed as a result.
You may be able to stick with your existing domestic scheme if you only have staff travelling or working abroad short-term, where those UK-based assumptions are less likely to be tested. A UK Group Critical Illness policy is written around a UK-based workforce, with standard assumptions about medical evidence, diagnosis, and treatment through recognised UK facilities.
The main differences include:
For a handful of employees in one overseas location, extending or arranging a policy is usually a simple conversation. It gets more complex once you have people spread across several countries, which is why it’s important that when you’re putting cover in place, you get the structure right.
Structuring cover across several countries comes down to two decisions: setting a consistent condition list and cover level centrally, and establishing whether a single international policy can cover everyone or whether local cover needs to sit alongside it in certain countries. To do this, you need to consider the following:
Decide centrally what conditions are covered and at what multiple of salary, rather than letting it vary by whichever local policy happens to be available in each country. This is the decision that keeps cover fair and predictable across your whole workforce, wherever they’re based.
Some countries have specific requirements around locally admitted cover, which can affect whether a genuinely global policy is available or whether local cover needs to sit alongside it. This is worth confirming country by country before you commit to a structure, rather than assuming one policy will work everywhere. The same consideration applies to Group Life and Income Protection internationally.
See our full guide: International Employee Benefits: A Guide for Employers.
Every business is unique, so it’s difficult to determine the cost of International Group Critical Illness Cover without knowing your exact needs. As a general guide, your premiums are shaped by two sets of factors: the ones specific to covering people internationally, and the standard ones that apply to any Group Critical Illness scheme.
What’s different about covering people internationally:
The standard factors that apply to any scheme:
When it comes to International Group Critical Illness Cover, how the benefit is taxed depends entirely on the local tax rules.
In the UK, premiums are classed as a taxable Benefit in Kind, so employees pay income tax on the cash equivalent value of the benefit, while the payout is tax-free. But many employers get caught out assuming the same applies everywhere.
It’s crucial to check with local tax specialists to ensure you’re fully informed on any liabilities.
Not automatically. UK policies are underwritten around a UK-based group, and diagnosis or definition issues can surface at the point of claim for someone treated overseas. If an employee is relocating long-term, this is worth checking with your insurer.
Not usually in principle; most policies still cover 10 to 12 core illnesses with an option to extend further. What differs is whether the definitions and severity criteria hold up reliably when diagnosis happens outside the UK, which is why international policies are built to address this directly.
They cover different things. Group Life pays out if an employee dies, while Critical Illness pays out on diagnosis of a serious illness, whether or not it proves life-limiting. Many employers offer both, since the situations (and the financial pressure a family faces in each) are different.
Almost always as a multiple of salary, in the same way as Group Life cover, which means the insurer will need up-to-date salary information for anyone you want to include.
If you’re setting up Critical Illness Cover for staff based overseas, or reviewing whether your existing UK scheme covers your international workforce, we’re here to help. Our specialists are available to help you find International Group Critical Illness Cover that will give both your team and your business the most suitable protection.
To learn more and compare quotes from across the market, get in touch with our specialists on 02084327333 for a no-obligation consultation.
Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:
