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Group Critical Illness
What is a Group Critical Illness Plan?
A Group Critical Illness Plan is an employer-funded insurance policy that provides a tax-free lump sum payment to an employee if they are diagnosed with a serious medical condition covered by the policy — such as cancer, heart attack, or stroke.
It’s designed to offer employees financial support during recovery, helping ease the burden of major lifestyle changes, medical costs, or lost income that can follow a serious illness. For employers, it’s an attractive benefit that demonstrates care for staff wellbeing and helps with recruitment, retention, and morale.
How does it work?
Under a Group Critical Illness scheme:
- The employer arranges and pays for the policy on behalf of eligible employees.
- Each employee is insured for a fixed lump sum, usually linked to their salary (for example, two- or four-times annual pay).
- If an employee is diagnosed with a covered critical illness (as defined by the insurer’s list of specified conditions), the policy pays out directly to them.
Some policies also include children’s cover at no extra cost, providing an additional payment if an employee’s child is diagnosed with a listed condition.
Typical conditions covered
While the exact list varies by provider, most Group Critical Illness plans cover:
- Cancer (of a specified severity)
- Heart attack
- Stroke
- Multiple sclerosis
- Major organ transplant
- Kidney failure
- Loss of limbs or sight
Optional enhancements can include coverage for permanent disability or a wider range of illnesses.
Tax treatment
- The employer’s premiums are generally treated as a business expense but may be considered a P11D benefit in kind for employees (depending on the policy structure).
- The lump-sum payout to the employee is tax-free, as it’s a personal benefit received due to illness.
Who is it for?
A Group Critical Illness Plan is well-suited to:
- Businesses of all sizes looking to enhance their employee benefits package.
- Employers who want to support staff wellbeing and offer protection beyond standard sick pay.
- Companies seeking to differentiate their benefits offering in competitive industries.
Complete the form
Submit the details of your insurance requirements here