Group critical illness cover
Group critical illness cover is a form of contract taken out with an insurance company that will pay out a tax free lump sum on the diagnosis of a specified critical illness.
As a small business owner you decide which employees to insure under the group critical illness cover, and how much to insure them for. It can be all your staff or employees who are working at a certain level. The business then pays the premiums and receives any lump sum payout which is then paid to the employee.
However, most employers provide group critical illness cover as an employee benefit giving employees:
- Peace of mind in times of uncertainty and worry, helping them and their families adjust and look forward to the future
- Financial security, through a tax-free lump sum payment, when they face a critical illness
- Ability to pay for private medical treatment to facilitate a return to work
- Ability to fund necessary adaptations at home such as wheelchair access or a chairlift
A claim can be made as soon as any of the insured employees are diagnosed with any critical illness which is scheduled within the group critical illness insurance policy.
What to watch out for when taking out group critical illness cover:
With some group critical illness cover the insured employee must survive at least 28 days after their critical illness is diagnosed, (although some insurance companies have reduced this to 14), it is best to check when reading the terms of the policy. If the insured employee were to die before the end of the survival period, any claim would be invalid.
The types of plan and premiums differ vastly so financial advice from an experienced independent financial adviser is essential.
Any questions on group critical illness cover?
Please call us on 01582 839280 or Email us.
