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Employee Benefits Advice

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Group Income Protection | Group Critical Illness | Death In Service
 

Attracting and retaining the right people to help your organisation thrive and grow is a priority for every business. Being the kind of employer people want to work for is another.

Employee benefits are known to have an impact on staff retention, performance, and productivity, generating goodwill and a sense of wellbeing. They make a significant difference to employer-employee relations. Some benefits are more highly valued than others, including Income Protection, Critical Illness cover, and Death in Service policies.


Group Income Protection

Although none of us knows what the future holds, we can plan for some eventualities. Illness, accident or disability can affect anyone, resulting in a prolonged period of time off work and significantly affecting income. Income Protection provides a vital safety net at a difficult time, while helping employers to support their staff, manage absence, and control the costs of long-term absence.

What is Group Income Protection?

Group Income Protection is a policy designed to protect both employer and employee from the financial consequences of long-term absence.

Who needs Group Income Protection?

Everyone. State benefits provide a safety net but it is a fragile one, providing only minimal support during long-term sickness.

Why would we take out a Group Income Protection policy?

For a variety of reasons. As well as paying a ‘salary’ to an employee making a claim, a Group Income Protection policy helps employers manage absence by providing comprehensive claims-management services. Studies have shown that income protection policies can even reduce absence and help to control payroll costs.

Do employees really value such a policy?

Yes, though much depends on how well it is understood. In some sectors, candidates regard it as an essential element of the employer’s offer of a post. In others, employees only really understand its value to them when they need to make a claim.

How will employees be made aware that they have income protection?

Premier Choice’s  comprehensive communication service will help promote employees’ awareness of the cover, what it offers, and how to claim.

How much does Group Income Protection cost?

Usually around 1% of salary roll.

Does Group Income Protection replace sick pay?

This can vary, according to the contract of employment. Many employers take this as an opportunity to revisit their contracts. Generally, the cover begins when sick pay finishes.

Do we have to cover all employees?

No. You can elect to cover some categories of staff.

Do all employees have the same level of cover?

Again, you decide which level of cover to provide for different categories of employee. We can help design a scheme that will suit your business needs..

Can we cover employees who are based overseas?

Yes, provided the employee is registered in the UK.

Is the benefit paid taxable?

Yes. It works in the same way as a salary, and is subject to tax and National Insurance in the usual way. This is NOT a P11D benefit.

How can Premier Choice help me?

We have been running Group Income Protection schemes for a considerable time, and everything we do is designed to give you the best possible service. We bring  our expertise to help design and implement the right scheme for your business, and make sure it runs smoothly with our innovative, award-winning claims management system.


Group Critical Illness

Diagnosis of a critical illness is a distressing time for an employee, their family, and their employer. Although advances in medicine  are improving chances of survival all the time, recovery from treatment is often prolonged.

Critical illness cover is a highly valued employee benefit, providing financial  security while the employee is off work with a (specified) critical illness.

What is a Group Critical Illness policy?

It provides a one-off payment to an employee if they are diagnosed with a qualifying critical illness.

Who needs a Group Critical Illness policy?

In many cases, employers take out the policy for a group of key employees as part of a structured benefits package. An increasing number of employers are extending the cover to  more employees, either directly or more commonly through a flexible benefits package.

What is a Critical Illness?

It is an illness or condition diagnosed after the policy starts; pre-existing conditions are not covered.

Which Critical Illnesses are covered?

It varies from one insurer to another, but normally includes some types of cancer, heart attack and stroke. Insurers have their own lists of what is and isn’t covered by the policy; we can talk to you about the best policy for your needs.

Why would we want a Group Critical Illness policy?

An employee covered by the policy is better placed to manage the financial consequences of long-term absence after diagnosis of a critical illness, and to focus on making a good recovery. A Critical Illness policy often forms part of a flexible benefits offering, and is  usually an essential element of the package.

How does it benefit our business?

Every business wants to attract the right calibre of employee. Rewards for when things go well matter; so does help and support if illness strikes. Critical Illness cover assures candidates and employees that they are working for an employer who cares about their wellbeing.

Do employees really value Critical illness cover?

Yes. Prospective employees regard this as a vital element in the suite of employee benefits offered by a company; its omission make may all the difference between a top candidate accepting the post or going elsewhere.

Is the benefit subject to tax?

No. It is paid tax-free. Any further employer contribution is classed as a P11D benefit.

How much does Group Critical Illness cost?

The cost is determined by the age of the employee. As a general rule, if an employer provides one times salary, the cost will be under 1% of salary roll.

How will our employees know they have this benefit?

Premier Choice has an effective and comprehensive communication service to help promote your employees’ awareness and understanding of the policy.

Do we have to cover all employees?

No. Some employers choose to arrange cover for particular categories of employee as part of a structured benefits package.

Do all employees have the same level of cover?

No. You can insure different categories of employee for different levels of cover. We will talk to you about your needs and design a scheme to suit your requirements.

How can Premier Choice help our business?

Premier Choice have many years’ experience in Critical Illness policies as part of an Employee Benefits package. We are there all the way, from design and implementation to the smooth running of the policy. Our innovative, award-winning claims management system is designed to give you the best advice, assistance and support.


Death In Service

A good employer cares about their employees. A good employer cares about what happens to the family of an employee if the worst happens, and an employee dies.

What is Death In Service?

A tax-free lump sum, usually a multiple of the employee’s salary, paid to the family if the qualifying employee dies.

Who should take out a Death In Service policy?

An employer who cares about the wellbeing of their employees’ families if the worst happens – and who wants to be seen to care.

Why would I want a Death In Service policy?

To protect the families and dependants of the employees

What are the benefits of having such a policy?

Your most precious business asset is the talent and commitment of your staff. This policy is evidence of your commitment to them, protecting their family and dependants in the event of an untimely death.

How much does a Death In Service policy cost?

It depends on the level of benefit. It is the cheapest form of employee benefit, costing from as little as a few pounds per employee.

How long does the Policy last?

It usually expires when an employee leaves service or reaches a specified retirement date. If an employee is made redundant, the cover can be extended for an agreed period by prior agreement with insurer.

How will our employees know they have this benefit?

We’ll help promote your employees’ awareness and understanding of the policy with our comprehensive communication service.

Does the policy have to cover all employees?

No. You can arrange cover for some categories of employee as part of a structured benefit package.

Can employees based overseas be covered by a Death in Service policy?

Yes. As long as the employee is contracted to the UK Company.

Is a Death in Service benefit payment subject to tax?

No, as long as the payment is within the limits set by HM Revenue and Customs. You can read current advice on  tax and benefits here.

Who receives the benefit from a claim?

Employees usually complete a death benefit nomination, also known as an Expression of Wish Form. This sets out who they wish to receive the Death in Service benefit payment.

How can Premier Choice help our business?

Our many years of experience running schemes such as Death in Service means we are ideally placed to help. We are on hand all the way through, from design to implementation of the scheme to helping with the smooth running of the policy. Premier Choice’s service includes our innovative, award-winning claims management system, which is designed to give the maximum assistance to employers.


 

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