Group Critical Illness

Group Critical Illness cover can provide protection for employees, mitigating the financial burden of falling ill and offering support when it’s needed most.

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Group Critical Illness cover can provide protection for employees, should they be diagnosed with a specified critical illness. Suffering from a critical illness can have both a financial and emotional impact on the individual and their family. This type of cover is a way of providing employee benefits that can mitigate the financial burden.

In this section, we’ll look at:

  • What is Group Critical Illness cover?
  • How does it work?
  • What are the benefits of Group Critical Illness cover?
  • Group Critical Illness cover vs Group Income Protection

What is Group Critical Illness cover?

Group Critical Illness cover is designed to pay out a lump sum to an employee, if they were to be diagnosed with a critical illness that meets a policy definition. It usually covers a variety of critical illnesses and operations, and sometimes additional cover can be included for an extra cost.

This type of cover is taken out by the business and covers individuals, easing the financial burden of being diagnosed with a critical illness. The employee and their family can use the money as they wish, whether it’s to fund treatment or to cover living costs while you take some time off.

How does it work?

The business will take out the policy and pay the premiums, but it is the employee who receives the pay-out if they are diagnosed. The illness must meet certain criteria to be eligible for a claim.

Group Critical Illness cover often includes employees’ children automatically, so if they are diagnosed, you will also receive a pay-out. Employees may also add their partners if they wish.

It is important to understand the terms of your policy and become familiar with what is covered and what isn’t. Many insurance providers will also offer additional services such as counselling, dedicated nurse or second opinion services.

What are the benefits of Group Critical Illness cover?

There are benefits for both the employer and its employees when it comes to taking out Group Critical Illness cover.

For the employer, offering this type of benefit can help with recruitment efforts as well as retaining staff. Group Critical Illness cover can form part of an attractive benefits package. This can help with improved employee engagement and productivity.

The premiums can qualify for corporation tax relief, which means providing this type of cover for staff can be cost-effective.

For the employees, receiving Group Critical Illness cover can make sure you feel valued by your employer. It can provide peace of mind that there is financial support available, should you be diagnosed. What’s more, the potential to add partners and children can be a huge weight off your mind.

Group Critical Illness vs Group Income Protection

Both Group Critical Illness cover and Group Income Protection can offer financial support if you were to fall ill, but they are very different types of cover. 


Group Critical Illness Cover

Group Income Protection

Tax free, lump sum pay-out

Regular monthly payments that reflect a percentage of an employees’ wage

One time pay-out once upon diagnosis, if illness meets a policy definition

Can claim more than once, and will pay out until you are well enough to return to work or you retire 

Specific illnesses and severity of conditions are covered, set out in the policy

Does not have a set list, and will pay out if you’re unable to work due to injury or illness, as long as there is proof, such as a doctor’s note

Will pay out straight away

There is usually a deferred period before payments begin

The two types of cover have their own benefits and can be suited for different circumstances. In an ideal world, you could have both types of cover, but it could be expensive. These types of policies are more complex than individual protection, so it’s recommended to speak to a business protection specialist, such as ourselves.

Our advisers can explain the different policies, ensuring you have all the information you need to make the right decision.