What is Group Protection?
Group protection insurance is a collective policy arranged by an employer to provide financial protection benefits to their employees. Rather than each employee arranging individual cover, the employer sets up a single scheme that covers all eligible staff, usually at a significantly lower cost per head than individual policies.
Group protection is a valuable part of an employee benefits package and can help businesses attract and retain talent, demonstrate a duty of care to their workforce, and support employee wellbeing. Premiums are generally treated as a tax-deductible business expense, and many group schemes offer simplified or automatic underwriting, meaning employees can join without medical evidence up to a set level of cover.
Types of Group Protection
Group protection helps employers provide valuable financial protection benefits to their employees. Depending on your business needs, cover can be arranged in a number of ways.
Group Life Insurance
Pays a tax-free lump sum to your loved ones if you die during the policy term. Ideal for covering a mortgage, replacing lost income, or leaving an inheritance.
Group Critical Illness Cover
Pays a lump sum to an employee on diagnosis of a specified serious condition such as cancer, heart attack, or stroke. Helps employees focus on recovery without financial pressure and can include optional cover for their children.
Group Income Protection
Replaces a proportion of an employee’s salary if they are unable to work due to long-term illness or injury. Reduces pressure on sick pay budgets, supports rehabilitation, and provides a pathway back to work, benefiting both employer and employee.
Key Man Insurance
Protects your business financially if a key individual, such as a director, founder, or top performer -dies or is diagnosed with a serious illness. The policy pays out to the business, helping to cover lost revenue, recruitment costs, or loan repayments while you recover from the loss.
Why choose us?
Specialist broker
With extensive experience in group protection, we compare all major UK insurers to find a scheme that fits your workforce size, budget, and benefit requirements.
Free service
Our service is always free of charge. We receive payment from the insurer if you proceed, but your premium will be the same as going directly to the provider.
Personal approach
Our friendly advisers take time to understand your business objectives and design a group protection package that genuinely works for you and your employees.
A tailored service for employers
Comparison websites cannot account for the complexities of employee benefits and group schemes, but an independent protection broker can. UK Health Insurance can help whether you:
- Are a growing business looking to use employee benefits as a tool to attract and retain talented staff.
- Are new to group protection and would like free expert advice on building the right employee benefits package.
- Already offer group protection benefits and are looking to review your scheme, improve the cover, or find a more competitive premium at renewal.
Get a Protection Insurance quote
Things are often easier to discuss over the phone, so why not complete our quick Request a Callback form? One of our protection insurance specialists will give you a call at a time that suits you to discuss your options and provide a free, no-obligation quote.
Group Protection FAQs
How many employees do I need to set up a group scheme?
Most group protection insurers require a minimum of three employees to establish a scheme, though the minimum can vary by product and insurer. Some providers offer competitive terms for small businesses and SMEs. Our advisers work with insurers across the market and will find the most appropriate option regardless of the size of your workforce.
Do employees need to provide medical evidence to join?
One of the key advantages of group protection is simplified underwriting. Up to the insurer’s Free Cover Limit (FCL) a set level of benefit employees can join the scheme without providing any medical evidence at all. Cover above the FCL may require medical underwriting. This makes group schemes far more accessible than individual policies for employees with pre-existing conditions.
Is group protection insurance tax-efficient for employers?
Yes. Premiums for group life, group critical illness, and group income protection are generally treated as an allowable business expense for corporation tax purposes, making them cost-effective to provide. Group life insurance written under a registered excepted group life trust also means the benefit falls outside employees’ estates for inheritance tax purposes. We recommend confirming the tax position with your accountant, and our advisers can explain the typical treatment in more detail.
What happens if an employee leaves or a new employee joins?
Group protection schemes are designed to flex with your workforce. New joiners are typically added at the scheme’s annual renewal or on their start date if the policy allows mid-year additions. Leavers are simply removed.
Can I offer different levels of cover to different groups of employees?
Yes. Group protection schemes commonly offer different benefit tiers for different categories of employee, for example, higher multiples of salary for senior staff or directors. These employee categories need to be defined objectively (e.g. by job grade, length of service, or salary band) and applied consistently. Our advisers will help you design a structure that is both commercially sensible and compliant with insurer requirements.
How often should I review my group protection scheme?
Group protection schemes are typically reviewed at annual renewal, when the insurer reassesses, the risk based on the current membership and claims experience. This is also the ideal time to check whether the scheme still meets your employees’ needs and whether better terms are available elsewhere. Our advisers will support you through the renewal process and proactively search the market if there is an opportunity to improve your scheme or reduce your costs.