Group critical illness is the fastest growing group risk benefit and can be used to supplement sick pay and private medical insurance.
Group critical illness is a policy taken out by an employer to pay a tax-free lump sum to an employee if they are diagnosed with a serious medical condition or they undergo a defined surgical procedure. A claim will be considered once the employee has survived for a specified period and been diagnosed with or suffered one of the conditions covered by the policy.
Where cover is paid for by the employer, corporation tax relief is given on the premiums, the employer is liable for Class 1A National Insurance contributions on the premiums and premiums are treated as a P11D benefit for employees.
Group critical illness is increasingly being provided on a purely voluntary basis as part of a flexible benefits arrangement. In this case, the premium the employee pays does not qualify for tax relief.