Group Critical Illness Insurance | Spectrum Financial Advice

What is Group Critical Illness?

Group Critical Illness Insurance is a policy taken out by an employer on behalf of their employees, as a staff benefit, in addition to their basic salary. It will provide a tax free lump sum payment to an employee in the event of their diagnosis with a specified critical illness. In some cases, the employee’s children and spouse may also be covered.

With Group Critical Illness Cover, you can ensure your staff receive the support they need in the event of a critical illness. In the event of a claim this lump sum payment can then be used by the employee and their family to continue their lifestyle and standard of living and be protected financially from the devastating effects that a critical illness diagnosis can have on their lives.

With flexible schemes and expert advice, you will be able to select the exact level of cover you require for your employees.

To speak with an expert, please get in touch.

Please also take a look at our frequently asked questions (FAQs) towards the end of the page.

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Comprehensive Cover

Protect your employees from a range of critical illnesses by providing cover that pays out a lump sum to them following their diagnosis.

Family Protection

In many cases there is an additional option to add your employee’s children and spouse to the policy, so they can also be protected from the impact of a critical illness.

Flexible Policies

Select the right level of cover for your business & employees and tailor the policy to suit the changing needs of you and your staff.

How Does Group Critical Illness Cover Work?

Taken out by you (your company) on behalf of your employees, the Insurance will pay out a pre-determined lump sum in the event of a named employee being diagnosed with one of several conditions/illnesses specified within the policy’s terms & conditions

This lump sum can then be used to cover rent/mortgage payments; loan/credit card repayments; utility and other household bills/expenses, etc and help lessen the impact that such a change can have on their lifestyle.

A diagnosis such as cancer, heart attack or stroke can have far reaching effects for both the employee and those around them. In addition to providing financial stability, such a payment could be used towards the cost of any lifestyle changes made necessary or even the cost of treatment, to reduce the long term impact as much as possible.

As the policyholder you (your business) get to decide which/how many of your employees will be named on the policy, as well as the:

  • Cover level, which is usually either calculated as a multiple of employees’ salaries or offered as a “flat benefit” (usually consisting of pay-outs ranging between £25,000 to £250,000+ in the event of a claimant being diagnosed with a specified critical illness)
  • Add-ons/optional extras including Emotional Support Services and a Second Medical Opinion Service (confirming diagnosis or reviewing current treatment plan) to be included (in addition to standard ranges of covered conditions, many policies also offer cover for various other conditions and/or other benefits such as Employee Assistance Programmes covering health and wellbeing, including mental health support as optional extras)

Insurance policies recommended by Spectrum Financial Advice are underwritten by the most trusted providers in the industry – meaning they will provide your workforce with reliable cover throughout their employment with you. Learn more.

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What are the Benefits of Group Critical Illness Policies?

Group Critical Illness Insurance is an important part of an employee benefits package and gives peace of mind to the employee by knowing they will receive a tax free cash lump sum payment if they are diagnosed with a critical illness / serious illness. Any payment made to the employee will be free from income tax and capital gains tax. Certain schemes also offer children’s cover and other benefits that may be available at an additional cost.

It allows you to offer your staff flexible critical illness cover that will provide the employee a lump sum payment in the event they are diagnosed with a critical illness. This financial support can be used by the employee and their family, at a time when they may need it most.

Group Critical Illness cover generally offers a range of illnesses as ‘core cover’ and you are able to select additional / more comprehensive cover at an extra cost.

Group schemes also benefit employers as they can enhance their standing as a generous, caring & supportive employers – which will, of course, make it easier for them to:

  • Retain existing staff members of key importance to the company’s profitability and future growth, and
  • Attract more high-calibre employees
  • Coverage for spouses and civil partners

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What does Group Critical Illness cover?

Whilst taken out by an employer, the policy covers insured employees in the event of a diagnosis of a specified critical illness. The insurer will provide a lump sum payment to an employee should they be diagnosed with a critical or terminal illness as specified.

Most schemes always cover the conditions set as standard by the ABI (Association of British Insurers), which include:

  • Coronary artery bypass grafts, strokes & multiple sclerosis
  • Numerous specific cancer types (as defined within policies’ terms & conditions)
  • Major organ transplant, kidney failure & heart attacks (major)

Further conditions offered by many policies as part of their ‘standard’ set of conditions and/or as optional extras may consist of:

  • Advanced stage liver and/or respiratory failure
  • Aorta graft surgery, bacterial meningitis and/or benign brain tumours
  • Aplastic anaemia, traumatic brain injuries and/or cardiomyopathy
  • Creutzfeldt-Jakob disease, repairs to/replacement of heart valves
  • Coma (with permanent symptoms), encephalitis and/or permanent deafness
  • Dementia/Alzheimer’s disease, open heart surgery/median sternotomy and/or permanent blindness
  • Parkinson’s disease and/or permanent loss of a hand, foot or the ability to speak
  • Motor neurone disease and/or HIV (if infections were contracted through accidents at work, physical assaults or blood transfusions)
  • Multiple & permanent system atrophy, eyeball removal and/or primary pulmonary hypertension
  • Spinal strokes, progressive (& permanent) supranuclear palsy and/or systemic lupus erythematosus (when accompanied by significant/severe complications)
  • Strokes with symptoms lasting 24 hrs or more, total permanent disability and/or third degree burns (covering at least 20% of the face, the head and/or other body surface areas)
  • Total permanent disability and/or diverse other significant illnesses/condition
  • Plus many other conditions


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View some of our frequently asked questions that some of our customers have asked.

What is the eligibility for Group Critical Illness?

If you are a UK business who employs at least two staff members, then you are eligible to take out a scheme on behalf of them.

With our access to a range of Insurance schemes available in the market and our experience of working with both large and small companies, we are able to source a suitable level of protection for your needs, meaning your employees can take advantage of the benefits of of such cover. In addition, medical underwriting or previous medical information may not need to be disclosed, unless the sum assured is above the free cover limit (FCL), although this is assessed by the insurer on a case by case basis. Because of this, the insurance providers usually add a pre existing condition exclusion.

So, whether you have only two members of staff or employ hundreds, we will recommend a suitable scheme for you and your employees.

Who Should Have Group Critical Illness Protection & Why?

Giving your workforce peace of mind in the knowledge they/their families will be adequately provided for in the event of a critical illness, offering critical illness cover as part of your employee benefits, schemes will:

  • Improve their concentration, morale and attitude towards you/work, which will in turn increase their productivity and consequently your business’ profitability
  • Increase their loyalty to you/your company, which will increase their likelihood of remaining within your employment
  • Enhance your business’ reputation as a supportive, caring & responsible employer, which will make attracting/recruiting highly skilled/talent additional employees significantly easier

As such, taking out this type of policy is beneficial for both employees and employers – and an area all companies, large or small, should consider.

Are you ready to protect your employees? Request your business’ free review now.

How much does Group Critical Illness Insurance cost?

Although a policy is taken out on behalf of your employees and those employees/their families are the beneficiaries, you, the policyholder, will be responsible for payment of the premiums.

The cost of these premiums will be determined by the:

  • Number of employees you wish to cover
  • Cover level (size of pay-out) you set
  • Optional extras you choose to add
  • Age of each employee
  • Occupation & industry

Insurance providers will also take named individuals ages and occupational risk into account.

As the employer, premiums are usually classed as a business expense, therefore, the company will be able to claim corporation tax relief.

Taking all these factors into consideration, finding a cost-effective policy may seem like a complicated task, so speaking with an expert financial adviser is vital – Spectrum Financial Advice will advise you on the most suitable policy. Find out how by requesting your company’s free, no-obligation review today.

How Can Spectrum FA help?

Spectrum Financial Advice have been assisting businesses obtain suitable Group Life, Group Critical Illness and Group Income Protection Insurance cover for many years and we are experts in this area.

With our personalised and tailored approach, our advisers will be able to recommend the correct level of Insurance for you and your employees.

Being independent financial advisers, we have access to the leading insurance providers in the market, at competitive premiums. We provide expert regulated advice and will tailor the cover to match the circumstances of you and your business.

We do not charge you a fee for our advice or service and you will speak directly to an expert who will guide you through the process and handle all the paperwork on your behalf.

If you would like to speak to one of our advisers to arrange a free, no obligation review, please get in touch with us today.

You can contact us by completing the contact form on the website, by emailing, or by phone on 01279 315 013.

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