Employee Benefits Packages

These products are designed to help protect an employee’s financial wellbeing. Also in this category are Flexible Benefit Systems and Total Reward Statements.

Some of the policies available include:

Group Life (Death In Service)

Pays a tax free (subject to HMRC approval) lump sum on the event of a person passing away during their employment. These policies are usually viewed as an allowable trading expense by HMRC.

Income Protection

Continues to pay a proportion of an absent employees salary for a set period. As an example benefit payments could be limited to 2, 3 or 5 year term, or paid until normal retirement age. Options are available in terms of the percentage of salary an employer is prepared to cover, and on the waiting period before a claim starts paying. Where possible, insurers aim to provide effective rehabilitation services, targeted to achieve a mutually beneficial return to work for the absent employee.

Critical Illness Cover

Pays a tax free lump sum to an employee after diagnosis of any of a predetermined list of critical illnesses, as declared in the policy documentation.

Total Reward Statements / Flexible Benefit Systems

Often seen as a precursor to a full flex scheme, Total Reward Statements (TRS) provide a centralised platform that pulls together and values all incumbent employee benefits. This enables employees to easily view their total reward package provided by their employer. These portals are also a good central storage unit for documentation relating to the benefits in place, and can be used for holiday requests and tracking.

A popular phrase used to describe Flexible Benefit Systems, is ‘cafeteria style’ benefits, as the options available are usually presented to employees through a menu driven system. Benefits can include tax-efficient salary deduct options, such as childcare vouchers, cycles to work and computers, as well as providing access to a host of discounted group self-pay products, such as private medical insurance, dental cover and travel plans. An employer can decide to offer a fund from which employees can choose to purchase the benefits they believe most relevant to their specific situation / life stage.

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