Group Insurance Schemes

Group Life

Group Life forms part of many organisation employee benefit programmes and is seen as one of a number of important benefit tools to help retain and attract staff.

What are the main benefits?

  • Group Life insurance schemes provide financial peace of mind for employees and their loved ones in the event the employee dies
  • Group Life cover provides employers with a more cost effective solution than offering individual life insurance policies to employees
  • Administration is kept to a minimum for employers making Group Life insurance an attractive proposition allowing employers to focus on normal everyday business needs

How does Group Life work?

Group Life insurance pays out a lump sum death benefit to your employees’ family or next of kin in the event an employee dies whilst employed by an organisation. Cover is established as a single scheme that covers some or all employees within a business with a “death in service” benefit (sum assured). This is usually a multiple of individual employee salary, or as a lump sum flat benefit.

Group Life works in the same way as a regular life insurance policy by paying out a predetermined sum in the event the policyholder dies within the term of a policy. This is usually based on a flat lump sum or multiple of each employee’s salary, e.g. 2, 3 or 4x salary.

The benefit is tax free provided cover does not exceed more than the employee’s available lifetime allowance. The current lifetime allowance is set at £1 million for the 2016/2017 period.

The employee must be employed by the insured organisation at the time of their death in order for the benefit to be paid out. Group Life death in service schemes are annually renewable contracts which usually run until the employees normal retirement age.

Group Sick Pay Insurance (Income Protection)

Group Sick Pay insurance forms part of many organisation employee benefit programmes and is seen as one of a number of important benefit tools to help retain and attract staff, protecting employees against financial hardship in the event they are unable to work due to injury or illness.

What are the main benefits?

  • Group Sick Pay insurance schemes provide financial peace of mind for employees and their loved ones in the event the employee is unable to work due to illness or injury
  • Group Sick Pay insurance provides employees with rehabilitation support services to help get a employee back to full health quickly so they can return to work
  • Rehabilitation support services can significantly reduce the length of employee absences, reducing the impact on an organisation, helping to manage sickness more effectively and reduce associated costs
  • Different terms are available to help compliment and extend employers existing sick pay policy

How does Group Sick Pay Insurance work?

Group Sick Pay insurance is set up in a similar way to Group Life insurance contract and not every employee has to be included in the Group Sick Pay insurance cover. It may for only covers certain members of staff such as senior managers or directors. Please note - You should be aware of the implication of the Equality Act 2010, whereby it is illegal to discriminate against employees, job seekers or trainees on grounds of age.

Employers can choose to introduce a fixed probationary period for employees and also specify defer periods before cover kicks in. Employees can be assigned into suitable categories with an appropriate level of cover for each category chosen by the employer. This allows more senior members of staff to have greater benefit levels or shorter deferred period than other staff.

 

Group Critical Illness

Group Critical Illness insurance forms part of many organisation employee benefit programmes, providing a lump sum benefit if one of your employees is diagnosed with a critical illness (conditions covered will vary depending on incumbent insurer).

Providing Group Critical Illness benefit to your workforce can help demonstrate that you care about your employees and their welfare.

What are the main benefits?

  • Group Critical Illness insurance schemes provide employees with a lump sum if diagnosed with a critical illness. The money can be spent on anything they need, or utilised to help aid their recovery
  • Cover is normally limited to a maximum of £500,000 per employee and a maximum salary multiple of 5x
  • Conditions covered vary depending on insurer used but many policies cover major conditions such as cancer, heart attack, stroke or major organ transplant
  • Spouses, partners and children up to the age of 18 (or 21 if in full time education) can be covered
  • Rehabilitation support services included in some critical illness contracts can significantly help to support recover
  • Some Group Critical Illness insurance schemes include RedArc. This service offers a long term Personal Nurse Adviser service that provides practical advice and emotional support following a cancer diagnosis. The service is provided by telephone and available at claims stage to members and their families

How does Group Critical Illness Insurance work?

Group Critical Illness insurance is set up in a similar way to Group Life insurance contract and not every employee has to be included in the Group Critical Illness insurance cover. It may for example only cover certain members of staff such as senior managers or directors.

Group Critical Illness pays out a lump sum if your employee is diagnosed with a critical illness or undergoes one of the operations that meet the policies definitions. Many policies vary so attention should be given to the cover provided and policy condition definitions that are defined within a policy schedule.

Check out our video explaining more about Group Life Cover

CONTACT US

If you have any questions or would like to register your interest in any of our schemes, please fill in the short contact form to the right:

Busy Bees Benefits
Latchford House
Shenstone Business Park
Lynn Lane
Shenstone
Staffordshire WS14 0SB

0330 333 9100

information@busybeesbenefits.com

www.busybeesbenefits.com