Employee benefits

Employee benefits for contractors and employees vary greatly, even if they are working under the one organisation. Approximately 20% of employees have privately arranged Income Protection Insurance, and 50% of employees have sufficient levels of Life Cover for their dependents. Support for your family if the worst happens is a key benefit no informed professional should give up.

The complete benefits package

Life cover, and other additional insurance benefits, can be provided on a group basis. Group life, and in particular group disability cover, could be a key element in properly valuing and retaining loyal employees. It frees the employer from any moral obligation to support an employee after death or disability, with a solution in place.

Why would an employer provide Group Risk benefits for their employees?

An employer can write off the full cost of providing the benefits against corporation tax.
It is an attractive, and relatively cheap, benefit that the employer can offer current and future employees.
The underwriting requirements for group risk assurance are much less stringent than for individual policies.
Typically, based on the size of the group, a not insignificant level of the cover can be provided without medical evidence.
The employee’s details only need to be provided at scheme setup, and again at renewal, this makes administration a lot simpler.
Because the cover is organised as a group policy, it costs significantly less than equivalent individual plans.
An employee must be actively at work, with no absences over three days in the past six months for new schemes.
Administration for the employer is much more straightforward than purchasing equivalent policies for each individual employee.

The full range of protection products available under a group risk package include:

Death in Service (Life Cover) – This can be a multiple of salary or a fixed lump sum. In addition the payment can be made as a spouse’s pension or as a children’s pension.
Income Protection – This pays a monthly income if an employee is unable to work for a prolonged period due to illness or injury – essentially protecting the employee from loss of income.
Pension Contribution Protection – This ensures contributions continue to the employee’s pension plan, even if they are on long term sick leave.
Group Serious Illness cover provides a lump sum when an employee is diagnosed with a specified serious illness.

Does your employer look after you and your family? Or are you the contractor, if so, you are also the employer.

For more information, Get In Touch