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Group-Risk
 
            

Group Risk

 
 

Group Permanent Health Insurance

This type of Insurance pays out regular income to the insured upon becoming disabled through sickness or accident and therefore unable to continue work. With the exception of a small number of exclusions payment will be made regardless of the event.  (The cover is not illness specific like critical illness cover).
PHI is vital in particular for the self-employed and can be used to replace up to 75% of net profits or salary (employees) in the event of ill-health. PHI is also useful as a scheme for employers who do not wish to take the responsibility of continuing payment of salary to employees suffering from long-term disability.

Advantages:

-  The premium is fully tax relievable against income tax subject to an overall limit of 10% of income. This substantially reduces the cost to Irish tax residents.
-  The provision of a substantial income which can also escalate in payment whilst disabled.
-  Once the risk is accepted by the insurer it cannot be withdrawn provided premiums continue to be paid.
-  Income payments will continue until age 60 or 65, or earlier recovery.

Group Life Assurance

Group Life forms the life insurance portion of an employee benefits package. It enables employers to provide a lump sum benefit and an income to an employee's dependants in the instance that an employee should die prior to normal retirement age. As well as encouraging staff loyalty and demonstrating a genuine care for staff welfare, Group Life insurance goes some way to reassuring employees that their efforts in the workplace really count.

Product Features:

Cover is provided in many different forms, but the most common are group life and spouse's death in service. Group life insurance offers a lump sum benefit and spouse's death in service offers a dependant's pension. Both are based on a multiple of the employee's salary at the date of death.
Within the permissible limits of the product, the employer can choose which level of benefit to provide and to whom the benefit will apply.
In addition to a spouse's pension, benefits may be provided for surviving children or orphans if the surviving spouse also dies.
Benefits can also be protected against inflation by including an escalation option. This means that any pension payable will increase over time at an agreed rate or in line with the Consumer Price Index.

Benefits

-  Competitive premium rates
-  Premiums are usually allowable as a business expense and enjoy corporate tax relief thus reducing the real cost
-  Wide variety of options contained in the plan means that the right plan can easily be constructed
-  Generous Free Cover Limits - reducing the need for lengthy medical evidence
-  Implementation of the plan enhances employee relations
-  Easy administration and flexible underwriting

Benefits for Employees

-  Provides peace of mind and reassurance
-  Premiums paid on an employee's behalf are not treated as a benefit in kind, so are therefore not subject to income tax
-  Any lump sum payable to dependants is not subject to Inheritance Tax 
-  Temporary absence cover, even up to normal retirement date

 
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