With the increased level of Governmental/EU legislation coming into play in this area the complete package of "Conditions of Employment" is now being scrutinised very closely by both employees and potential employees. Insurance features of a total package can include such benefits as Medical Cover and Life Assurance, and these together with a clearly defined position on Stakeholder Pensions can make a major contribution to producing an attractive total package. In general a "Conditions of Employment" package should be put together with loyalty from current employees and attractiveness to potential employees as the main themes.

Group Healthcare Insurance

Cover is available to have treatment outside the NHS to ensure treatment is prompt in more comfortable accommodation. The policy can apply to key staff only i.e. Director/Managers or to all staff. Generally, however the more members to the scheme the cost per head becomes lower.

Group Permanent Health Insurance

It is possible to set up a company scheme, which provides benefits on a broadly similar basis to a personal policy provided above. Any benefits payable are first paid to the employer before being passed on to the employee. In this way the company is seen as providing income during periods of long term sickness.

Group Personal Accident & Business Travel Insurance

The cover under this type of policy is very flexible and can be effected on an annual basis or for a specific event/trip. There are three main parts to the contract. The first provides a tax fee lump sum benefit for disablement or for a loss of a limb/eye etc. The sum insured is either a fixed amount i.e. £100,000 or a multiple of salary. The second part provides a weekly benefit for up to 75% of the employees' salary. Benefits are payable normally after fourteen days up to a maximum period of 104 weeks. Often this period is altered to "dovetail" with any other employee benefits that may be in place such as permanent health insurance. The third part provides travel cover for employees both for overnight stays in the UK and for trips abroad. Cover can be for specified employees or cover the company as a whole.

Pension Scheme

Provides an extremely tax efficient method to build up an income and tax free lump sum for employees at retirement. Contributions receive tax relief at their highest rate and do not attract employer's National Insurance - making it cheaper to make a pension contribution than to pay salary or a bonus. Pensions are often seen as the most valuable type of perk. Under the new Stakeholder rules, from October 2001 employers with at least 5 staff must provide access to a pension scheme or risk fines of up to £50,000. A scheme can be tailored to reward senior or more successful staff and to attract new recruits.

Life Assurance (& Spouses Death in Service Scheme)

Provides a lump sum and also a widows/ers death in service pension if requested in the event of the death of a member of the scheme. The lump sum payable can be up to 4x the individual's salary with the death in service pension being up to 4/9ths of salary. Life assurance in particular tends to be very cheap.

Critical Illness Scheme

Provides a lump sum if an employee were to suffer from a critical illness but did not actually die. Illnesses typically covered include most heart attacks, strokes as well as permanent and total disability. Individuals suffering from these conditions cannot usually continue working, but would not receive the lump sum that would be payable from a life assurance scheme. The lump sum paid could stave off financial hardship by allowing a mortgage to be repaid or help towards improving the quality of life.

This is just a summary of some of the popular types of Company sponsored employee benefit schemes. For more specific advice tailored to your own needs please give us a call