Company Critical Illness insurance is designed to protect employees in the event they become unwell and are diagnosed with a serious health condition covered by the policy.
Critical Illness Cover usually includes conditions such as: cancer, heart problems and strokes. However, what’s included will vary depending on the individual policy.
If an employee is diagnosed with one of the eligible conditions, they are paid a tax-free lump sum which they can spend however they choose. The agreed payout could be a multiple of the employees’ salary (for example, between one and five times their annual earnings) or a specified fixed amount.
This lump sum pay-out could be used to take time off from work, pay for treatment, enjoy an overseas trip or make adjustments to their residential setting to better manage their recovery.
Group Critical Illness:
These conditions are typically covered within Group Critical Illness policies (note: inclusions will vary depending on the individual agreed policy):
Meanwhile, pre-existing conditions and self-inflicted injuries will not be included.
The truth is that more and more people are suffering with critical illnesses such as cancer, heart issues and strokes, and the results for an employee can be emotionally and financially devastating.
It’s estimated that the average British adult could only continue to pay their bills for between one and three months if they were unable to work. Meanwhile a survey by Yorkshire Building Society revealed that six in ten workers do not have enough money saved up to pay unexpected bills.
Group Critical Illness offers employees a vital safety net if the worst were to happen. It means that employers can reassure their workforce (and their families) that they will be supported in such a situation.
Providing Critical Illness cover will also help attract and retain quality staff and shows a true commitment to their health and financial wellbeing. At a time of rising health anxiety, it will likely be more appreciated than ever before.
As with any kind of insurance, costs will vary depending on the level coverage you choose to provide and the health profile of your workforce.
Some of the key factors affecting price include:
Each of these factors affects the cost of your insurance premium. To get an accurate quote, it’s best to work with an independent insurance broker, like Engage, as we work across the whole insurance industry to present a range of competitive quotes tailored to your business need.
The most competitive deals on Critical Illness Cover are found via specialist health insurance brokers, such as Engage. This is because we’re experienced in ‘playing the market’ and negotiating deals better than can be found by going direct to the insurer.
Ultimately, we have pre-existing relationships with all the major insurance providers and they are keen to attract repeat business. Hence, they will offer superior quotes than they would to a standalone client.
Of course, the business value of professional advice should not be overlooked. As an expert insurance broker, we take the time to properly understand the needs of your business. Our raison d’être is to help you rather than sell products.
The value of an insurance consultant goes beyond finding competitive quotes. A good broker can also help set-up and manage the insurance policy for you, taking away the stress and uncertainty that too often comes attached with a policy. Making a claim shouldn’t be difficult and understanding how a policy works shouldn’t be stressful. We prove it doesn’t have to be.
To find the best Critical Illness Insurance deal, and draw the most value from it, contact the team at Engage on +44 (0)1273 974419. We’ll also help advise on all your other employee benefits & health insurance needs.
All the main insurance providers offer Group Critical Illness Insurance and, as with Group Income Protection, they often include some form of employee support designed to provide practical health support to workers.
The main UK insurance providers offering Group Critical Illness include:
Yes, your employee will need to pay tax on the value of the premium the business has paid for on their behalf. HMRC will alter the tax code to reduce their tax-free personal allowance – the reduction will be the equivalent of the value of the premium the business is paying for them.
No. The amount is received as a tax-free lump sum.
Yes, it is considered a business expense which the business can claim back against Corporation Tax.
No – most insurers would require a member to survive for a period of 14 days following diagnosis in order to make an eligible claim. This is known as a survival period.
Most insurers operate two levels of cover (Basic/Standard and Extra/Extended), however, most employers opt for the higher of the two levels. Base cover usually covers between 13-15 conditions and Extra/Extended typically adds another 24-26 conditions on top of the Base/Standard plan.
Standard Group Critical Illness plans do not cover pre-existing medical conditions. However, for larger businesses it is possible to provide an element of pre-existing condition cover. Whilst members couldn’t join a scheme and be covered of a condition they are currently suffering with (eg heart attack), once they are clear and recovered from that condition, they would be covered should it occur again.
Yes – cover can be extended to both partners and children.
As insurers look to provide more value than ever, there is an increasing number of support services which employees can access for free. These can include;
Potentially, as they cater for different scenarios. While Income Protection provides for a wider scope of injuries and illnesses, Critical Illness Cover pays out a single lump sum if an employee is diagnosed with, or has surgery for, a specified, potentially life-threatening illness.