Critical Illness Cover

What is Group Critical Illness Insurance?

A Group Critical Illness policy is one 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, normally 14 or 28 days, and been diagnosed with or suffered one of the conditions specified within the policy.

Most providers offer two options based upon the number of conditions covered by the policy, these are known as the basic and extended cover options.

The medical conditions included under basic cover have been agreed and simplified by the Association of British Insurers so that employers and employees understand what is being covered.

The medical conditions included under the extended cover option will vary from insurer to insurer, so care needs to be taken to understand what additional cover is being provided and possibly lost if there is a change of insurer.

Cover can be either a fixed amount or a multiple of salary.

Where cover is funded by the employer, the cost can attract corporation tax relief, the employer is liable for Class 1A National Insurance contributions on the premiums and they are treated as a P11d benefit for employees.

Group Critical Illness cover is increasingly being provided on a purely voluntary basis as part of a flexible benefits arrangement. In this case, the employees’ contributions do not qualify for tax relief.

Normally pre-existing conditions are excluded thus a person having suffered from cancer cannot join and claim, however, such a person could claim for a different critical illness covered by the policy.

Goddard Perry will work with you, providing guidance and support to ensure the benefits you provide meet with your company and employee needs.  Our service includes.

Planning & Consulting

  • Initial meeting to understand your business and employee needs and create a project plan.
  • Analysis of any existing arrangements, and if required a full market review to source and recommend a suitable arrangement.
  • Consultation and advice on the key points to consider, your scheme design and identification of any other relevant issues.
  • Implementation and Employee Communications
  • Full assistance with the implementation of the arrangement.
  • Provision of an employee communication strategy to ensure they are made aware of the cover to be provided and their option to opt-out.
  • Assistance with completion of the insurers application documents and ensuring that cover is place and documented correctly.

Ongoing Services

  • Managing your scheme renewals each year.
  • At each rate expiry (usually every 2 years) we will also conduct a market review to ensure your provider remains suitable. A clear and concise report will be provided making a recommendation to enable you to make an informed decision for the benefit of the company and employees.
  • Annual review of staff data to ensure all employees remain covered and eligible and to identify whether a mid-term review is required.
  • Assistance with underwriting claims.
  • Keep you informed of Legislative changes which may affect the benefits you provide.
  • Inform you of any valuable additional benefits provided by the insurer you have chosen.
  • We can also provide a market review which falls outside of the rate guarantee period.


If you require more information or assistance regarding possible Critical Illness Cover requirements please email us.


Goddard Perry Consulting


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