Group Protection Insurance UK: 3 Ways for Business Owners to Protect Their Employees

The available options for group protection insurance UK insurers provide 3 great ways for business owners to protect their employees. Here’s what you need to know about these options.

Ways for Business Owners to Protect Their Employees

Typically offered as part of extensive employee benefits schemes, group protection policies are taken out by employers on behalf of their employees. As policyholders, employers pay the premiums and decide:

• Who/how many employees will be covered;
• Cover levels;
• Which, if any, optional extras will be added, and
• Other factors depending on the selected type of policy

Covering employees for the duration of their employment with the company, group protection policies may consist of:

Group Life Insurance – In the event of a named employee’s death, a group life policy will pay a pre-determined lump sum, that will benefit the family of the deceased individual.

Cover levels (i.e. the amount to be paid out) are usually calculated as a multiple of an employee’s salary.

Policies often offer diverse optional extra benefits & add-ons, including, for instance, a dedicated helpline for bereaved families.

Group Critical Illness Cover – Group critical illness insurance will pay insured employees a pre-determined lump sum if they are diagnosed with a critical illness as specified within the policy’s terms & conditions.

In addition to a range of standard illnesses/conditions as set out by the ABI (Association of British Insurers), many policies also offer cover for an extensive selection of additional conditions/illnesses (which are listed as ‘standard’ by some policies and as ‘optional extras’ by others).

Group Income Protection – Designed to compensate employees for a loss of earnings due to long-term absences from work because of an injury or serious illness, this type of policy can provide employees unable to work with a pre-determined monthly payment.

Typically consisting of a set percentage of the insured employee’s usual income (gross), these payments will commence after a pre-determined ‘deferred period’ (typically one to three months after the employee first became unable to work) and end either when the employee returns to work or after an also predetermined period.

To learn more about group income protection, please refer to our “Guide to Group Income Protection Insurance”.

Group Protection Insurance UK

Offering employees peace of mind that their families will be provided in the event of something unforeseen happening to them, group protection schemes can significantly benefit employers by improving employee morale, focus and productivity.

They could also make recruiting and retaining high-quality staff easier by presenting the company as caring, responsible employers.

Determining the most suitable type of policy and cover/cover levels to meet your employees’ specific needs can, however, be complicated. Expert advice and assistance are therefore imperative.

Get in Touch

With years of experience in helping employers across all industries protect their employees, Spectrum FA can help you obtain suitable cover for your employees at the most competitive premiums. Contact us for a free no-obligation review today: 01279 315 013 or please get in touch via our online contact form.