There is a range of insurance policies available to help businesses to improve their employee benefits packages that are desirable to new employees and can help retain current employees.
There are several providers that offer health insurance that can also be a benefit to the employer as the employee can often get well quicker and be treated in a more flexible manner.
Providing life insurance is also a great employee benefit either as a group life insurance policy covering all employees or relevant life insurance for specified employees. We have taken a look to see what is available below.
The table below gives a quick comparison of the top UK providers for employee benefits.
|Company||Private medical insurance||Group life insurance||Relevant life insurance|
|Legal & General||No||Yes||Yes|
|Company||Personal accident||Minimum life cover||Maximum life cover|
|Aviva||No||Not stated||Not stated|
|AIG||No||Not stated||35 x income|
|RSA||Yes||Not stated||Not stated|
|Zurich||No||Not stated||30 x total renumberation|
|Allianz||No||Not stated||EUR 2,000,000|
|Ageas||Yes||Not stated||Not stated|
|LV=||No||Not stated||£10 million|
|NFU Mutual||No||Not stated||Not stated|
|Chubb||No||Not stated||Not stated|
|Legal & General||No||Not stated||£10 million|
|Royal London||No||Not stated||Not stated|
|Tokio Marine||Yes||Not stated||$30 million|
|Vitality||No||Not stated||Not stated|
* The facts and figures included here come from each company’s website and were accurate at the time of writing (April 2019) but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Some of the features and benefits of Aviva’s employee benefits.
- Private medical insurance and group life cover
- Policies that are tailored to meet your business needs
- Optional mental health cover
- 24-hour stress counselling helpline
- Access to the Digital GP app
- Caters for employers with 2-250 employees
- Offers one-month free health cover on 12-month policies
- Group life insurance offers a lump sum payment on death
- Life insurance premiums are not taxable and an allowable business expense
- Flexible life insurance that can be adjusted during the term
Aviva offers a few products that are good employee benefits. They provide private medical insurance that covers employees with core cover that includes in-patient, day-patient and out-patient treatment. They have a range of additional cover available including mental health, dental and optical. Customers can access their 24-hour stress counselling helpline and Digital GP app. New customers can also benefit from getting the first month’s cover free.
Aviva also offers group life insurance which covers all employee that are in service with life insurance that pays out to the family of the deceased. Group life insurance offers a good benefit as it not a taxable benefit and it is an allowable business expense.
Some of the features and benefits of AIG’s employee benefits.
- Relevant life cover
- Death in service benefit
- Individual cover for key employees
- Employee’s family will benefit from the policy
- Covers both death and terminal illness
- Level of cover can be adjusted during the term
- The term length can also be increased
- It can be transferred to a new employer or the employee
- Not a taxable benefit
- Can be bought direct or via a broker
AIG offers a few business insurance options including relevant life insurance as an employee benefit which is life insurance designed for individual employees only. It offers the individual insured a death in service benefit that their family is the beneficiary of. It will also pay out if the person is diagnosed with a terminal illness.
AIG’s relevant life insurance is a flexible product that can be adjusted during the term of the policy as you can change the level and length of the cover. The policy is linked to a specific person which would end when they leave their employment, but the policy can be transferred to a new employer or to the employee.
Some of the features and benefits of RSA’s employee benefits.
- Offers a combined group personal accident and business travel policy
- Includes accidents as well as death in service benefit
- Supports employees that are abroad when injured
- Most suited to businesses with international travel that want to protect their employees
- Incorporates business travel insurance
- Includes personal liability insurance
- Also includes personal security, kidnap and detention cover
- Covers legal expenses
- 24/7 medical assistance line
- Dedicated claim team
RSA offers a combined product that brings together group personal accident and business travel cover which makes a good business protection package as well as being a great employee benefit. It helps businesses meet their obligations to their employees when asking them to travel abroad and to keep them safe.
RSA’s group personal accident and business travel policy give employees the peace of mind that their family will receive a lump sum if they die and that they are protected if they have an accident. It also gives them protection abroad if they travel for work as the policy will cover travel insurance, personal security, kidnap and detention cover.
Some of the features and benefits of AXA’s employee benefits.
- Small business health insurance plans
- Cover for 1-249 employees
- Tailored to your business needs
- Designed to minimise the disruption to your business from illness
- Reduced stress from receiving prompt healthcare
- Choice and flexibility of where and when treatment happens
- Access to private treatment and better hospital facilities
- Great employee retention and recruitment tool
- Option to include mental health, extra care and extended cover
- 24/7 access to Health at Hand helpline
AXA offers health insurance that is suited to smaller businesses as it covers 1 to 249 employees. They tailor their policies to meet their customer needs. Through including employee health insurance as part of your employee benefits package it is a great benefit that can help increase employee retention and help with recruitment, but it is also seen as a way of reducing employee absenteeism.
AXA’s health insurance is designed to help businesses to reduce the disruption caused by key personnel being ill as they can get prompt treatment that is also flexible so that the employee can better manage their appointments around their commitments.
Some of the features and benefits of Zurich’s employee benefits.
- Relevant life insurance or group life insurance
- Cover for individual employees or all employees
- The policy includes death and terminal illness whilst in service
- Can be used as a standalone policy or as an extension to group life insurance
- Designed to help employees with substantial pension funds
- Offers a range of cover
- Flexibility to change the cover during the term
- Can be linked to the employee’s mortgage
- Not taxable for the employee or employer
- Relevant life cover is transferrable to a new employer or to the employee
Zurich offers relevant life insurance and group life insurance as an employee benefit. Relevant life insurance can be a standalone policy or as an extension to an existing group life insurance cover to provide additional cover. Relevant life insurance is a flexible policy and is exempt from inheritance tax and will not impact on the employee’s pension funds.
Zurich’s relevant life and group life cover offer a death in service benefit that provides a lump sum payout to the employee’s family. This cover shows the business as a caring employer that values its staff. Beneficiaries can also access specialist support services including nurses, examinations and rehabilitation.
Some of the features and benefits of Bupa’s employee benefits.
- Offers small business health insurance
- An attractive employment benefit
- Helps with staff retention
- Variety of packages to suit different needs and budgets
- Access to over 600 hospitals
- Includes out-patient appointments
- Cancer cover as standard
- Mental health cover
- Offers a range of excess options
- 24/7 Anytime Healthline
Bupa is recognised as a private healthcare provider who also offers businesses health insurance which is an attractive employee benefit that can help with staff retention. As Bupa has its own hospital facilities, they can provide access to over 600 facilities which combine their own and partnership facilities.
Bupa’s health insurance can offer a variety of cover as they have a range of packages that are designed to meet all business needs and budgets. Their policies can include additional services and offer a range of excess options. They provide cancer cover as standard as well as a variety of outpatient services and mental health treatment.
Some of the features and benefits of Allianz’s employee benefits.
- Offers both healthcare and group life insurance
- Attractive employee benefits
- Healthcare plans covering in-patient and day-care treatments
- Additional cover available for medical evacuation, maternity, oncology, rehabilitation and palliative care
- Supplementary plans available for out-patient, dental and repatriation
- Access to private healthcare in the UK and abroad
- Group life insurance covers death in service and diagnosis of a terminal illness
- Life cover can be fixed or based on the employee’s salary
- Life cover is flexible with a range of optional extras
- Life cover up to €2,000,000 available
Allianz provides healthcare and group life insurance as employee benefits which can be purchased as standalone policies. Their group life insurance is a flexible policy that covers all staff and can be based on a fixed amount or the employee’s salary up to 10 times the value to a maximum of €2,000,000. They offer a range of optional extras to tailor the policy to your needs.
Allianz’s healthcare products are packaged as core plans with optional extras and supplementary plans. Core plans include a variety of in-patient and day-care treatments. They claim to offer one of the most comprehensive oncology benefits. They have a 24/7 helpline that is multilingual to assist employees.
Some of the features and benefits of Ageas’ employee benefits.
- Offers personal accident insurance
- Individual cover for specified employees
- Death in service lump sum payout to the employee’s family
- Accident cover that pays out a weekly amount
- Allows employers to support their employees and their family
- Also gives employers financial assistance to replace the employee
- Offers a good supplement to health insurance
- Can combine it with key person, recruitment and employer liability cover
- Has a dedicated accident claim team
- Available through a broker only
Ageas provides tailored insurance packages that can be a great employer and employee benefit as it includes death in service and personal accident cover. The policy gives the employee or their family cover that will pay out in the event of the employee dying or having an accident, this could result in a lump sum or weekly payments.
Ageas’ personal accident insurance can be a standalone product or supplement health insurance and it provides access to a dedicated personal claim team. The cover can also include employer benefits such as key person insurance where the policy funds the cost of replacing the employee and other employment liability insurance cover.
Some of the features and benefits of LV=’s employee benefits.
- Relevant life insurance
- Individual cover to specified people
- Offers a death in service benefit that includes diagnosis of a terminal illness
- Can provide cover up to £10 million
- Good employee benefit for key employees
- Can be used to top up group life insurance
- Fixed plan suited to smaller businesses
- Tax efficient
- Policy not available to sole traders and partnerships
- Available through financial advisors
LV= offers relevant life insurance that provides individual life insurance cover for key personnel on an individual basis. It is a good employee benefit as it provides a death in service benefit that will also pay out on the diagnosis of a terminal illness. It can be used as a top up and additional benefit to group life insurance.
LV=’s relevant life cover is a fixed plan policy that can’t be changed, and it must be set up in a discretionary trust. The policy is tax efficient as it is normally exempt from inheritance tax, not a taxable benefit and is an allowance business expense for the employer.
10. NFU Mutual
Some of the features and benefits of NFU Mutual’s employee benefits.
- Offers relevant life insurance
- Individual employee cover
- Covers death in service and diagnosis of a terminal illness
- A great employee benefit that gives peace of mind
- Pays out a lump sum
- Flexible cover that can be altered
- Can supplement group life insurance
- Can be transferred to a new employer or the employee
- Provided in partnership with AIG
NFU Mutual provides relevant life insurance that is a great employee benefit as it gives the employee peace of mind that their family will be provided for if they die or are diagnosed with a terminal illness. The policy will pay out a lump sum to the family.
NFU Mutual’s relevant life insurance gives individual cover to employees and is not a group policy but it can be used to supplement a group life policy to give additional cover especially as it does not count towards the pension pot. It is tax exempt for employees and an allowable business expense for employers.
Some of the features and benefits of Chubb’s employee benefits.
- Offers group life insurance
- Valuable employee benefit for all staff
- Accident cover can also be added to the policy
- A lump sum payment on death
- Weekly benefits if injured and off work
- Flexible and comprehensive cover
- Cover is based on a fixed amount or multiple of their salary
- Employers can also benefit from a payout to help replace the employee
- Includes counselling, rehabilitation and physiotherapy
- Fair and fast claims service
Chubb offers group life insurance that can also include accident cover, so it creates a good employee benefit which is also beneficial to the employer. Group life insurance is a valuable employee benefit that pays out a lump sum to the employee’s family on their death whilst in service and will also pay weekly benefits when the employee is injured.
Chubb’s group life insurance provides flexible and comprehensive cover that can be based on either fixed amount cover or on the employee’s salary and multiples of the salary, and it also includes a payout to the employer to help them replace the employee.
Some of the features and benefits of HDI’s employee benefits.
- Offers group personal accident and business travel insurance
- Attractive employee benefit
- Provides a policy where you can choose how much benefit to pass on to the employee
- Payouts can be used to provide a temporary or permanent replacement
- Covers accidental death
- Offers work-based cover or 24/7 accident cover
- Can insure worldwide health risks
- Option to include business travel cover
- Includes breaks, dental injuries, disablement, disfigurement, and the loss of limbs, eyes and intellectual capacity
- Minimal administration required as medicals or notification procedures not needed
HDI provides group personal accident cover with the option of business travel insurance as an attractive employee benefit as the employee knows that they will be covered if they have an accident. Employers can decide whether they want to provide cover for work activities only or 24/7 cover which can benefit both the employee and the employer.
HDI’s group personal accident cover is a flexible policy that allows the employer to decide how much of the benefit from the policy can be passed to the employee. Employers can choose to use the benefit to help them fund or recruit a replacement employee either temporarily or permanently.
13. Legal & General
Some of the features and benefits of Legal & General’s employee benefits.
- Choice of cover for group life insurance and relevant life insurance
- Death in service benefit and diagnosis of a terminal illness
- Both are an attractive employee benefit
- Lump sum payment to the employee’s family
- Policies that can cover individuals or all employees
- Relevant life insurance is not available to sole traders or partnerships
- Relevant life cover is good for high earners as it doesn’t add to their lifetime allowance
- Group life insurance can offer a dependant pension instead of a lump sum
- Tax efficient
- A simple and fast claim process
Legal & General provides two products that can be used as an employee benefit which are group life insurance and relevant life insurance. Both products provide a lump sum to the employee’s family if they die in service. Relevant life insurance is designed for individuals whereas group life insurance is for all employees and is suited to businesses with over 10 employees.
Legal & General’s relevant life cover is good for high earners as it does not add to their lifetime allowance and can be used to top up a group life insurance policy. Group life insurance can be paid out as either a lump sum or a dependant’s pension.
14. Royal London
Some of the features and benefits of Royal London’s employee benefits.
- Offers relevant life insurance
- Death in service benefit
- Also includes payout on the diagnosis of a terminal illness
- An individual product, not a group product
- Suitable for directors and employees
- A benefit that is not taxed
- Also an allowable business expense
- Gives access to a dedicated nurse
- Offers a Helping Hand service with recruitment and legal helplines
- Can only be purchased through a financial advisor
Royal London provides relevant life insurance which is a good employee benefit as it gives the employee’s family protection as they will receive a lump sum payment if the employee dies or is diagnosed with a terminal illness.
Royal London’s relevant life insurance is an individual person policy that is great for directors or employees and is most suited to smaller businesses that can’t warrant taking out group life insurance. They offer additional services as part of the policy to help the families and the employer which include a dedicated nurse and their Helping Hands service with employer advice lines.
15. Tokio Marine
Some of the features and benefits of Tokio Marine’s employee benefits.
- Offers individual and group personal accident insurance
- It covers death and accidents
- They tailor the policy to your business
- An attractive employee benefit
- Offers a lump sum payout
- Versatile product
- Can include income protection for employees for accidents and illness
- Key person insurance can be included
- A quick and fair claims process
- One of the biggest personal accident insurance providers
Tokio Marine offers personal accident insurance that can be tailored to your business needs to create a product for either an individual/s or all employees. This is a great employee benefit as it not only covers death in service but covers them for accidents and illness through the option to include income protection.
Tokio Marine’s personal accident insurance gives employees peace of mind that they are covered and their family will receive a lump sum if they die. It can also help protect the business if you chose to add key person insurance as this can help fill the gap in profits from the loss of a key person.
Some of the features and benefits of Vitality’s employee benefits.
- Offer business health insurance and relevant life insurance
- Helps with recruitment and retention
- Reward-based health insurance
- Access to prompt treatment from independently selected specialists
- Personal wellness expert to help your business’ health goals
- Wellness days to measure employee health
- Relevant life insurance for specified employees
- Death in service life insurance offering a lump sum
- Life cover that is tax efficient
- Life cover suited to high earners as it does not count toward Lifetime Allowance
Vitality offers two products that are great employee benefits – business health insurance and relevant life insurance which are standalone products. Relevant life insurance is designed to provide cover for individuals that gives them a death in service benefit that is payable to their family. It is tax efficient as an allowable business expense as well as being exempt from income and inheritance tax.
Vitality’s business health insurance is different to other providers as they offer an incentive to get employees healthier through a reward programme which is beneficial to staff and the employer. They provide support through a wellness expert and wellness days to monitor employee health.
17. Scottish Widows
Some of the features and benefits of Scottish Widows’ employee benefits.
- Offers relevant life insurance
- Cover for specified employees
- Death in service benefit
- Includes terminal illness diagnosis
- Although designed for individuals you can have up to 25 employees on a single plan
- A flexible policy with a choice of fixed or increasing cover
- Cover available for £25,000-£25,000,000
- Free accidental death cover whilst processing your application
- An allowable business expense
- Can only be purchased through a financial advisor
Scottish Widows offers relevant life insurance that is a good employee benefit that covers death in service and diagnosis of a terminal illness. Their policy is flexible with a choice of a fixed amount or increasing cover. Although it is designed for individuals you can select to cover up to 25 employees on a single policy.
Scottish Widows’ relevant life policy is an allowable business expense and is not a taxable benefit. The cover can also be transferred to a new employer or to the employee if they change jobs. They provide cover that starts at £25,000 and can go as high as £25,000,000.
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