Updated: July 29, 2019

Group Critical Illness Cover

Considering group critical illness cover? In this article we explore how it works, the key benefits, and how to find the best provider for your business

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: July 29, 2019

If you own a business and have more than two members of staff, you can purchase critical illness insurance policies for them.

This is seen as an attractive employee benefit, and helps companies attract high-quality workers and contributes to overall staff wellbeing. It could even potentially decrease staff turnover.

Purchasing a group critical illness insurance policy is not often cheap, so in order to get the best quote for your circumstances, speak to one of the experts we work with. We’ll be able to put you in touch with someone who has experience in arranging group critical illness insurance policies for companies.

What is group critical illness insurance?

Group critical illness cover is a policy taken out by an employer to provide workers with a tax-free lump sum in the event that they are diagnosed with a serious medical condition.

The coverage is also extended to workers who undergo certain surgical procedures. The claim is considered after affected workers survive a specified period, typically 14, 28 or 30 days. The policy is payable even if workers can’t return to work.

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What does it cover?

Most critical illness insurance schemes cover seven core illnesses, including:

When it comes to group critical illness insurance, however, many providers include up to a certain number of additional conditions in tiered packages.

Many policies also provide supplementary programs, like employee assistance and access to the best doctors service.

What isn’t included?

Most insurers are unable to cover employees who have a pre-existing condition.

Workplace critical illness cover may typically exclude total and permanent disability (which covers in the event of the claimant being left totally and permanently incapacitated), though you may have the option to include this.

For the best group critical illness insurance policy deals, speak with an advisor. They’ll be able to find you policies tailored to how many conditions you want to include.

Can a group critical illness policy cover my family?

In short, yes. Many insurers provide group critical illness policies that include an employee’s children up to the age of 18, and typically capped at £25,000. There are also add-on options for workers’ significant others.

Should I get group critical illness insurance?

If you have the funds and want to provide ways to invest in the well-being of your employees, then group critical illness insurance could be a great option.

Most simply, it could help you attract and retain high-quality workers, and helps you stand out against your competitors.

Furthermore, your employees may be more motivated to work for you and you’re more likely to maintain a better workplace environment if they can see that you care about their well-being.

On the other hand, group critical illness insurance can be costly depending on the type of cover you choose and how many employees are covered.

The experts we work with can provide you with tailor-made advice and quotes for group critical illness cover based on your circumstances. Simply make an enquiry and we’ll connect you with someone shortly.

How much does it cost?

The cost of group critical illness insurance depends on several factors, including:

  • The age of your workers: The older they are, the higher your premium
  • The number of employees covered: Schemes start from five employees
  • Policy type: Whether you choose a basic scheme or opt for add-on conditions
  • Your level of coverage: Most coverages range between £25,000 and £50,000 and are paid as flat benefit or as a multiple of a worker’s salary before tax. Some companies pay an employee two to five times their salary.

Tax benefits

Group critical illness cover is considered a business expense, so you get corporation tax relief. At the same time, there’s no income tax on your critical illness insurance payouts.

That said, your employees are responsible for paying taxes on the premiums they receive.

Can I get a quote?

Generating quotes for group critical illness insurance cover can be a lengthy and time-consuming process. There’s no ‘one size fits all’ solution, as each quote is completely unique to your preferences. In order to generate the best quotes for your company, you will need to approach many lenders, which means more work for you.

However, the experts we work with can do all the running around for you. They have ‘whole-of-market’ access, which means that they can create bespoke quotes on your behalf so you can focus on running your business.

Make an enquiry and we’ll put you in touch with an expert shortly.

How do I get a comparison of insurance providers?

For an accurate comparison between group critical illness insurance providers, make an enquiry. The experts we work with can research and present you with a selection of insurance providers tailored to your needs.

They have access to the entire market and can seek out the insurance provider who is the best fit for your needs and circumstances. There’s no need to do any of the legwork yourself.

Speak to an expert

The experts we work with are on-hand to help you with your group critical illness insurance questions. Call us on 0808 189 0463 or make an enquiry and we’ll put you in touch with someone to discuss your options with. You don’t have to pay a fee, and there’s no obligation to take out a policy.

Ask a quick question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in critical illness cover. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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