In a world of rising costs and tightened belts, any support workers can get from their employers is a welcome helping hand.
And for many employees, a group protection policy, whether life cover, critical illness, private medical insurance or income protection provided through the workplace, can be the bedrock of their financial plan.
They can access the cover cost-effectively and easily, and the inclusive nature of group protection means that some may be able to get cover when they would otherwise be priced out.
It is not without risk, though. The nature of group protection means that it is often temporary and liable to change at the whim of the employer.
Also, employees may become complacent about their protection needs and the proportion of claims denied could be cause for concern.
The most important benefit
Employees consider financial support to be the most important of the four pillars of health and wellbeing — financial, physical, mental and social — according to a poll from group income protection group, Grid.
When it comes to deciding which company to work for, 76 per cent marked financial help if they were unable to work long-term or support for their dependents if they were to die as the most important.
It ranked higher than mental health and wellbeing support at 63 per cent and benefits to help with physical health, such as access to non-NHS doctors, at 64 per cent.
“Group protection has undoubtedly risen in importance in recent times as a desired and valued employee benefit,” says Roy McLoughlin, partner at advice firm Cavendish Ware. “The pandemic has challenged the view of personal health and wellbeing as indestructible.
“Very few of us were untouched by it, and now people are considering their own situation more.”
Employers also favour group protection. Grid found that 98 per cent of employers saw a “significantly positive impact” on their company after taking out a group risk policy.
Businesses highlighted some significant benefits. They stated:
- Protection had helped them manage absences
- They were more likely to succeed when their employees were fit and engaged in their work
- Having a policy in place was helpful, as potential clients were often interested in how well the company looked after its staff.
“Group protection can be a differentiator when recruiting and retaining workers,” says Ron Wheatcroft, technical manager at Swiss Re. But he says companies need to to more to spread the word.
He adds: “Communication of the benefits to employees is vital, as the perks that come with the insurance can contribute to a healthy workforce.”
What is it good for?
One major benefit of group protection is that it is a cheap way for employees to access cover, especially if they may not be able to afford their own policy.
Group protection is also inclusive. Each scheme will have a “free cover limit”, which is a certain amount of cover that they can access without being medically underwritten.
At larger companies, pre-existing conditions may be covered. Those with more employees can negotiate more favourable terms thanks to the fact that the risk of higher-than-expected claims is spread across a bigger group, so it is easier for the insurer to predict the likely claims numbers.
