Nothing in life is certain, and the diagnosis of a critical illness such as cancer, a stroke or heart disease is a reality that many individuals have to face. With the right support, many people diagnosed with a serious illness are able to make a full recovery and return to work.

Our Group Critical Illness solution focuses on the financial needs of employees, helping them through their treatment and recovery. It offers a 'living benefit' to employees, who can use the lump sum provided to help towards any expense they choose, such as treatment costs, nursing care, financial commitments or changes that their illness necessitates to their lifestyle or home.

This cover can form an important part of a competitive employee benefits package, which is becoming increasingly key in the retention and maintenance of a motivated workforce. However your clients choose to set up their scheme, Group Critical Illness can go a long way to helping their staff cope sufficiently and make a satisfactory recovery.

Product features

Unlike life assurance, Group Critical Illness offers a living benefit paid in the form of a one-off tax-free cash lump sum if a condition defined under the cover is diagnosed and survived for 30 days or more.

There are 7 core illnesses defined under this benefit, including cancer, heart attack and stroke, although companies may choose to extend the range of conditions covered to 24 if required.

Optional family cover is also available, meaning that an employee’s spouse or children may be eligible to receive a tax-free lump sum if they become seriously ill.

The benefit can be tailored to vary the amount of cover per employee and eligibility for the scheme. Many ‘higher risk’ occupations can be included, allowing the employer to extend cover to a wider range of employees, who may not be eligible for other benefits.

Employers may also offer extra protection against permanent and total disability, which prevents an employee from working either at their own or another suitable occupation.

Benefits for your clients

• Provide financial assistance to a valued workforce
• Foster good employer-employee relations
• Contributions are treated as a tax-deductible business expense
• Flexibility to select a level of cover to suit their budget

Benefits for your clients’ employees

• Reassurance of a capital lump sum payment if serious illness should strike
• Cover for the most commonly suffered critical illnesses (cancer, stroke, heart attack and kidney failure)
• Financial help and support during rehabilitation
• Optional cover for spouse or children

If you would like more information on setting up a Group Critical Illness scheme for a client, click here to go to the “Setting up a Scheme” page or call us on 0845 223 8000.

The information regarding taxation is based on our understanding of current legislation, which may be altered and depends on the individual's financial circumstances.


Resources

Technical Guide - Group Critical Illness

Group Critical Illness Sales Brochure