Group risk benefits
Perhaps these are fairly obvious, but what are they and what advantages do they offer you?
- Provision of life insurance, critical illness and disability cover by the payment of a lump sum of up to 4 x salary for death or disability in service.
- Provision of income protection insurance against the risk of medium to long term disability of up to 75% of pre-disability earnings, and a spouse's and dependents' pension to provide against the risk of death in service.
- Provision of private medical insurance schemes.
- Employers can and do select which benefits they wish to offer, and at what level up to the maximums allowed.
But why bother?
- To increase staff loyalty and ease recruitment.
- To provide an employee benefit that will cost you a lot less than the cost to the individual for a similar benefit. It may also enable you to improve the pay and benefits package you offer at a real cost that is well below the perceived cost of the benefits you are offering.
- Group rates are far lower than those for individual policies, and you can offset them against tax.
- In some circumstances you may even insure the otherwise uninsurable. Subject to the details of the group, it will be possible to include members without any medical questions. A colleague with cancer could even be insured, perhaps even up to the full scheme specification, at no extra cost even if he or she is uninsurable as an individual.