Employers lack a full understanding of Group Critical Illness (CI) cover, research suggests.
The poll, by industry body Group Risk Development (GRiD) found only 27% of employers identified the correct definition of Group CI as ‘a policy taken out by an employer to provide a tax-free lump sum to an employee on the diagnosis of one of a defined list of serious conditions or on undergoing one of a defined list of surgical procedures.’
So, what do many employers believe? Well, some employers wrongly think Group CI will pay an income (rather than a lump sum) to employees while they have a serious illness. Others that it is simply to cover expenses as a result of the illness. Some even thought the policy paid out to the employer instead of the employee.
However, the poll found the most popular reason for offering Group CI is to look after staff and their families.
Katharine Moxham, spokesperson for GRiD, suggested that where no protection is in place, employees who fall ill could face the additional burden of financial stress which may hinder recovery from a medical condition or surgery.
The research also suggested employers do not think Group CI is as important to their employees as the other group risk benefits, with 38% considering Group Income Protection as the most important of the three, 29% think Life Assurance is the most important and 20% regard CI as the most important.
Please contact Brunsdon Employee Benefits for more information on Group Critical Illness Insurance or indeed any aspect of workplace benefits, pensions or workplace financial education.
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