The Benefits Of Group Critical Illness Cover

The Office for National Statistics (ONS) predicts that more than 24% of people living in the UK will be aged 65 or older by 2042, up from 18% in 2016. During the pandemic, many people reduced or even stopped their pension contributions meaning they won’t be able to retire as soon as they had planned. As people expect to live and work for longer CIC could be a good choice to help attract and retain the best employees. 

 

However, an older workforce can bring additional health risks for diabetes, cancer, and heart disease, for example. The government’s figures highlight that obesity is one of the most significant health issues facing the UK population today. More than six out of 10 adults are classed as overweight and this figure is continuing to rise. 

 

If any of your employees have long-term health problems it can seriously affect your business. As pressures on the NHS continue to increase many forward-thinking employers are providing support for the health of their workforce, including helping employees recover and return to work if they become ill. 

 

Critical illness cover will provide a tax-free lump sum if an employee is diagnosed with an illness or medical condition that is specified in the policy. The amount is often a multiple of the employee’s salary. This money can be used to pay private medical bills, to adapt a home, or to pay a mortgage, for example. The sum doesn’t have to be paid back when the person recovers and is ready to return to work. 

 

However, only about a quarter of employers are clear about how CIC works, with many thinking it will provide an income rather than a lump sum or will only cover medical expenses. 

 

GRiD, which aims to promote the uptake of corporate group protection, says that over £90million was paid out on CIC policies in 2020, with the average claim being £70,274. 

 

Fast access to extra support for mental health and physical conditions, including physiotherapy, rehabilitation, employee assistance programmes, counselling, online GP services, health apps, and second medical opinion services have been particularly helpful for those who have claimed. 

 

Whilst most claims are successful someone with a condition that isn’t included in the policy or who already had a pre-existing or related condition when they joined the plan won’t be able to claim for that condition. 

 

We will be happy to give you advice about choosing CIC for your business and to help you understand any limitations that might apply so that you and your employees know what to expect. 

 

For more information about critical illness cover please get in touch.