There are many different types of group insurance available – here is the lowdown:
- employers may refer to a collection of various health and welfare related benefits as medical insurance – in fact, the term may cover a variety of different things;
- sickness benefits – if you are too ill to work, the law typically requires that your employer continues to pay you a salary for a specified, though limited, period of time. After that period has passed, the level of payments may reduce and stop altogether. Some employers may provide a group income protection scheme, whereby up to 75 percent of your income continues to be paid for a specified period;
- life insurance – your employer may provide a life insurance scheme whereby your next of kin or other specified beneficiaries, may receive a lump sum should you die prematurely. This is sometimes called a death in service benefit;
- critical illness cover – unfortunately, none of us are immune from serious or critical illness. If it strikes, it may have a number of undesirable effects on our life and the lives of those around us. Some organisations may pay employees a lump sum should they be diagnosed with one of a list of recognised major illnesses. That might help to ensure that you are able to concentrate on trying to recover your health rather than deal with financial crises arising from the fact that you are unable to work and earn income;
- private health insurance (or corporate health insurance) – some employers may offer what they term PHI. Once again, that may mean different things to different employers but typically means that if you need medical treatment, you may be able to go and have the treatment on a private basis rather than through the NHS;
- taxation – depending upon your personal circumstances and the exact nature of the medical benefits being provided by your employer, you may in some cases find that you will need to pay extra tax in recognition of the fact that you are receiving a benefit in kind;
- balance – in spite of some potential increased tax issues, the above forms of benefit are typically highly regarded by employees and it may be possible to calculate a monetary value of the benefits you are receiving. That may allow you to consider your total employment package on a basis other than simply looking at your salary;
- medical centres – some large manufacturing or heavy industrial centres may have on-site medical facilities able to offer emergency treatment for accidents and sometimes, trivial complaints. These are not typically included in medical benefits definitions.
