Income Protection Insurance

Group Critical Illness Cover

Group an inexpensive way of providing employees with a benefit they would greatly value. Should an employee be diagnosed with life-threatening health issue, regardless of whether they can return to work or not, they receive a tax-free lump sum, enabling them to pay bills, a mortgage or buy disability equipment.

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Group CIC is Critical Illness Cover for your employees. Should an employee be diagnosed with life-threatening health issue, regardless of whether they can return to work or not, they receive a tax-free lump sum, enabling them to pay bills, a mortgage or buy disability equipment. It’s an inexpensive way of providing employees with a benefit they would greatly value.

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Why Would I Need Group Critical Illness Cover?

A fast-growing product, Group Critical Illness policies are seen to be a benefit that provides employees with peace of mind and can form part of an employee benefits package. If an employed person suffers a critical illness, this cover is invaluable and shows that the employer has taken the time to arrange this. The main advantage is that such a policy can retain staff and attract new employees. New statistics over recent years shows a significant increase of people developing certain cancers and other critical illnesses – therefore, such a policy helps people to prepare for such an eventuality. A great aspect of Group Critical Illness cover is that an employee can usually add their spouse and dependants on to the policy (often included free for the employee, children’s benefit is usually capped at £25,000) should the employee choose. In short, Group Critical Illness pays out a tax-free lump sum to the employee if they are diagnosed with a serious condition (see policy terms and conditions) and then survives a survival period (typically 14 days). This benefit is payable whether the employee is able to return to work or not. For more information and specific questions please see our Group Critical Illness FAQs below.
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    FAQS – Group Critical Illness Cover

    Enquiries regarding Group Critical Illness Cover often provoke a number of questions from our clients. Below are some which we encounter more often although for our best service please give our team a call on 0116 366 6866 or use the form to request a call back.

    How does a Group Critical Illness policy work?

    Insured employees will receive a lump sum if they are diagnosed with a Critical Illness and then survives over a survival period (usually 14 days – see policy terms and conditions). The lump sum can be spent by the employee in whichever way they choose – paying bills, paying off a mortgage, buying disability equipment and making alterations to their home. As an employer, providing Group Critical Illness shows that you care about your employees and their families. If an employee falls ill, the last thing they should need to worry about is becoming financially unstable.

    What’s the difference between Group Critical Illness and Group Income Protection?

    Group Income Protection is designed to pay an employee who is unable to work due to accident or illness by paying a percentage of their salary until they are able to return to work. However, Group Critical Illness policies are designed to pay out a lump sum if the person insured suffers a critical illness and then survives a survival period (usually 14 Days – see policy terms and conditions).

    What are the different levels of cover available?
    Provided as a multiple of the employee’s salary or as a flat benefit.
    Would all my employees have to be covered?
    Yes, due to the Equality Act 2010, all of your employees must be covered on this type of scheme.
    What if I wanted employees to have a different level of cover?
    Yes, your employees can have different levels of cover – please speak to one of our advisers because different Insurers have different requirements.
    What are the benefits for SME companies to have Group Critical Illness cover?
    It is an inexpensive way of providing employees with a benefit they would greatly value.
    How are my employees guaranteed cover?
    Different insurance companies offer different terms, so in some circumstances – yes, they may guarantee cover. Please speak to one of our advisers for further details.
    How would employees receive payment?
    The benefit would be paid to the insured member, not the business, should a claim be made and is accepted.
    If an employee leaves their job, can they keep their cover?

    No – if they stop working for the company, cover will not be continued for the insured person. They would need to take out a personal plan if they wanted to continue to be covered for Critical Illness Insurance.

    Does the policy cover employee accidents?
    It is usually covered if an employee becomes completely and permanently disabled as a result of an illness or accident.
    Is Group Critical Illness Protection tax deductible?
    It is viewed as a benefit-in-kind, so your employees will pay tax on their premiums via their P11D. The premiums you pay as a business for your employees are tax-deductible and can be offset against your profits for tax purposes.
    Why is Group Critical Illness necessary considering all my other overheads?
    This type of policy pays out if your employees suffer a critical illness. Plus, it helps to maintain staff morale levels as your employees will feel cared for. Therefore, it is a useful benefit to attract and retain staff.
    What happens if an employee needs to claim?
    They would need to complete and submit a claim form and personal statement. Plus, the insurer will require medical evidence to support the claim – usually this is gathered from a relevant medical professional.
    Will the cost of premiums remain the same each year?
    Most insurers will guarantee your premium for two years from when the policy started. Please speak to one of our advisers for more details.
    Would we need to collect medical information from staff?
    Depending on whether your employees need medical underwriting, a medical declaration form or a telephone interview may be required by an insurer.
    What if we want to add a new employee to the policy?
    The easiest way to do this is to get in touch with our team – we would then arrange for your new employee to be added on to your scheme.
    Is it possible for more than one claim be paid under this type of policy?
    Yes, although not for the same insured person.
    What are the added benefits for having a Group Critical Illness policy?
    Apart from having peace of mind in knowing that your employees have cover should they fall critically ill, the main benefits include boosting staff morale, maintaining staff retention, and an easier recruitment incentive.
    Is there anything I should consider before taking out a Group Critical Illness policy?
    Depending on whether you already have a type of ‘group critical illness’ scheme, it may be worth speaking to one of our advisers to see if switching to a new policy would benefit your business and your employees.
    Is Group Critical Illness the same as cover for a terminal illness?
    No, a Life Insurance policy usually covers a ‘terminal illness’ and pays out the benefit early if an insured person is diagnosed with a terminal illness and are told they have less than 12 months to live.

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