The aim of a Group Critical Illness policy is to pay out a tax free lump sum to an employee on the diagnosis of a listed critical illness. This payment takes place after a minimum survival period (for example 14 days or 30 days). People have become more and more aware about their health, whether it is fitness or potential illnesses. According to Datamonitor UK Health insurance, statistically 1 in 4 people will suffer from a Critical Illness between the age of 30 and 60. However the chances of now surviving a critical illness have never been better, this in turn, creates challenges for both the employee and the employer.

What are the benefits of a Group Critical Illness Scheme?

For the employer:

• It is an affordable employee benefit - it can be arranged for as little as £750.
• It provides an attractive benefits package which helps to recruit high calibre staff as well as retain your employees
• It can be offered as a standalone cover or as part of an existing voluntary or flexible benefits package.
• The policy can be tailored to suit your needs and to match your budget
• It reduces the pressure on the employer to provide financial support for those employees absent from work after suffering from a critical illness

For the employee:

• It provides them with peace of mind and financial security, knowing that a tax-free lump sum could be payable to them in the event they suffer a critical illness
• At a time when there would be uncertainty and worry, they would be receiving help from their employer that allows them to adjust and look forward to the future.
• It allows them to pay for medical treatment which could see them back to work far sooner than they would have been.
It could help them pay to adapt their home should they require to do so as a result of their critical illness

So what do I need to provide to set up a scheme?

Preferably we would like to discuss your requirements before hand, but as a quick guide the type of information you would normally need to provide include:

• A fully completed employer application form
• A trustee application form (if required)
• A full membership list including date of birth, salary, and business postcode
• A copy of the fully completed trust document and adopted rules (where required)
• A deposit contribution and direct debit instruction (where relevant)

Is there anything else I need to consider?

The group critical illness policy needs to have a minimum of five lives, which means it is accessible to employers of both large and small companies. You can choose the staff you wish to provide cover for – this could be based on a specific grade or could be set up to reward loyal service. The tax free lump sum can either be a percentage of salary or a specified amount. Another benefit is that the employee’s children are covered between the ages of 6 months to 18 years. On some policies spouses cover can also be made available.

Who do I need to contact to discuss my requirements in more detail?

We have given you two choices, you can either complete the short enquiry form below or you can call us on 01274 516900, where a group risk adviser will be delighted to help you with any questions. We look forward to speaking to you soon.