Beyond the jargon: what insurance benefits really mean to your team

Offering a comprehensive employee benefits package is more important than ever, and  Drewberry’s 2024 Employee Benefits And Workplace Satisfaction Survey found that a fifth of employees want insurance to protect their loved ones. But with so many products out there, and terms like “Group Income Protection” and “Critical Illness Cover” making many people’s eyes glaze over, it can be hard to determine the right product for your people – and what they really offer.

Here’s a jargon-free guide to the different insurance schemes you can offer your employees, and the real-life impact they have on your team.

There are a number of different insurance products your company can provide, you’ll see them referred to as “Group Risk Products”. So whenever you see “Group” before an insurance name, it means it’s for employees, paid by your business.

Each product has its own unique purpose, and some may be more relevant to your people than others.

Group Life Insurance / Death In Service

Also known as “Death In Service”, this insurance pays a lump sum to an employee’s family or loved ones should they pass away during their employment with you.

Why Employees Value It

Group Life Insurance offers peace of mind to your people, knowing that their loved ones will be taken care of if the worst happens. For many employees, cost is often the biggest barrier to taking out their own personal policy, so having your company cover this is highly valued.

It’s an especially-valued benefit if your employee is the main breadwinner in their household. While you never hope to use it, family members will still be able to pay the rent, mortgage, or other essential bills if your employee passess away.

Why Offer It?

• Provides a safety net of financial security for employees’ loved ones
• Unlike personal policies, employees are covered under a company scheme’s Free Cover Limit, regardless of their medical history or previous health conditions
• It’s an allowable business expense, as long as you declare it properly.

Group Income Protection

Replaces your employee’s monthly income (up to 80% of their full paypacket) should they become unable to work due to illness or injury.

Why Employees Value It

Could you live on £116.75 a week? That’s the UK’s Statutory Sick Pay, and it doesn’t offer much financial security should an employee suddenly be unable to work.

Having Group Income Protection in place can alleviate financial pressures if an employee falls ill or suffers an accident, allowing them to focus on recovery rather than worrying about the monthly bills.

Why Offer It?

• Works alongside your sick pay policy, relieving the burden of long term employee sickness
• Includes company National Insurance and pension contributions
• It’s an allowable business expense, as long as you declare it properly
• Allows employees to focus on getting better, helping them return to work sooner.

Group Critical Illness Cover

Pays a cash lump sum to an employee if they’re diagnosed with a serious condition such as cancer, heart attack, or stroke.

Why Employees Value It

The reality is that serious illness can strike anyone at any time. Having a Group Critical Illness policy in place actively demonstrates to employees that you’re prepared to support them through some of life’s most challenging times.

The cash lump sum can be used for anything the employee wants, whether it’s keeping up with the household bills, or financing any life adjustments as a result of their illness.

Why Offer It?

• Complements your sick pay policy, relieving the burden of long term employee sickness
• It’s an allowable business expense, as long as you declare it properly
• Lets employees focus on getting better, and back to work sooner.

Group Private Health Insurance

Pays for employees to access private healthcare, often leading to faster treatment and recovery times compared to NHS services.

Why Employees Value It

This insurance not only helps employees get back on their feet quicker after illness, but also shows that you value their health and wellbeing. Faster access to medical care means less time off work, which benefits both your team and your business.

Why Offer It?

• Enhance cover by opting for therapies such as physiotherapy (particularly beneficial for office workers who commonly experience conditions like back and joint pain)
• It’s a highly sought-after benefit, with UK employees citing it as their third most-wanted perk
• Reduces sickness absence by getting employees back to work sooner.

Bonus Perks That Come With Group Insurance Products

As well as the core coverage, most top insurers offer a range of extra services with their group insurance plans.

These services are free, and employees can use them without needing to make a claim. In fact, they’re designed to give support before a claim is necessary.

Different insurers offer different services, but the common ones include: Virtual GP, counselling, probate support, and second medical opinions.

What Insurance Really Means To Your Team

Insurance might not feel like the most exciting benefit to offer, but providing a safety net for your employees and their loved ones is actually pretty awesome when you think about it.  Here’s what adding a core insurance benefit to your offering conveys to your team.

You Value Them

Providing insurance shows your employees that you value their wellbeing. It’s a tangible way to demonstrate that you care about more than just their output at work. By offering these benefits, you’re telling your team that their health and financial security are priorities for the company – relieving them of the need to purchase personal plans (which can be out-of-budget for many).

Peace Of Mind

Insurance provides peace of mind, minimising the stress of unforeseen circumstances. Seeing as 40% of employees state money worries as a leading cause of stress, having a company policy assures them that, should they fall ill, they can focus on getting better. Or if the worst happens, their family will be looked after.

They’re More Than A Worker Bee

A carefully considered benefits package shows employees that you see them as individuals, not just worker bees. By acknowledging their broader life responsibilities and personal challenges, you’re supporting their overall wellbeing and showing that their role in the company is valued beyond just their daily tasks.