15 Jun 2020
Sometimes we can forget that life can be unpredictable for businesses and people. One in three employees have no form of cover, so the peace of mind of knowing your loved ones will be provided for in the event of an untimely death is one of the simplest, but most valued employee benefits that a company can offer its staff.
So, what group protection products should employers consider in their employee’s benefits package and what are the benefits of each for both parties?
What is group protection?
The idea of group protection is to protect both the employer and the employee in the event of death or serious illness/injury. It’s a great way of showing that you care for and support your employees, and hopefully it will attract the right kind of responsible team members. Not to mention, benefits are available from less than 1% of payroll and premiums can be offset against profits for tax purposes.
There are three different products within the umbrella term of ‘group protection’; group Life Cover, group Income Protection and group Critical Illness. Let’s take a look at how they differ from each other.
- Group Life Cover pays out if an employee passes away, no matter their medical history. Financial support is offered to their loved ones to help with the lack of household income without this relative around. From an employer point of view, it’s a competitive and attractive benefit to offer to staff which will help you to retain your best employees. From an employee point of view, it’s the all-important peace of mind for them and their loved ones. A lump sum, along with their pension benefits can be paid without waiting for probate and it’s free of inheritance tax.
- Group Income Protection offers regular payments for employees who are unable to work due to long-term illness or injury. Group Income Protection will reduce the impact of these long term absence costs, along with providing support to help employees get back to work. Plus, it’s a great safety net for employees as they don’t need to worry about being unable to earn money if they become seriously ill or injured. Where appropriate, fast track funded rehabilitation support can even be provided throughout their absence, including help with returning to work.
- Then there’s group Critical Illness. This provides your employee with a lump sum payment should they suffer one of the noted Critical Illness. This provides them with some financial support to cover the additional costs of being ill.
Need some help? We at LifeSearch are able to put in place an employee benefits package that offers a recognised and cost effective way of providing financial help and reassurance to an employee’s dependents if the worst was to happen. Give us a call on 0800 316 7253 for fee-free advice and let’s get the ball rolling.
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