Group Critical Illness

Group Critical Illness cover enables employers to implement a scheme to provide a tax-free lump sum benefit payment if you’re diagnosed with, or require surgery for, one of the specific illnesses covered by the policy.

There are two types of Critical Illness policies within the current market – a basic ‘Core Illnesses’ policy which covers around 12 major critical illness to that of a ‘Extended Illnesses’ policy which covers 39+ Critical Illnesses.

It’s a very simple benefit to provide to staff and is one of the highest valued ‘perks’ that an employee can have and yet its largely inexpensive to provide by the employer.

There are no restrictions on how you may use the lump sum. You may want to pay off your mortgage as an example or you could use the money to fund changes to your home.

It is treated by the HMRC as a benefit in kind, so each member’s tax allowance may be reduced.

Benefits for Employers

  • Improved Staff Welfare: Demonstrates the company's concern with the wellbeing of its employees
  • Flexible Plans: Different salary multiples can be used for the different staff categories included on the scheme.
  • Staff Retention and Recruitment: In an ever more competitive employment market, this is an attractive cost effect benefit to offer employees.

Benefits for Employees

  • Provides peace of mind to employees when ill knowing that they are financially looked after should they be diagnosed with a critical illness.
  • Free Cover Limit: The employee will be guaranteed a minimum benefit regardless of their medical history.
  • Tax Free Lump sum should you survive the insurer qualifying period (Normally 14 days after diagnosis)
  • Provides a 25% payment to Children from Birth to 18 years.

Frequently Asked Questions

What are the levels of cover?

Tiered benefits for different levels of staff or just one multiple – 4x Salary, 2x Salary or a fixed benefit of £250,000. Highest Benefit allowable is £500,000.

Why might an employee need Critical Illness?

With Medical Advances meaning that serious illnesses are not proving fatal, they can still have a major impact on an employee’s life and ability to earn a living.

What additional services are available to my employees who have Critical Illness?

Most providers will have additional services included such as a second Medical Opinion expert, Treatment Sourcing and a Personal Nurse service all invaluable to the employee.

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