Employee Financial Protection

Group Risk benefits that protect your people, and your business, when it matters most.

Financial Protection for Employees

Good investing is about making decisions you can live with through market ups and downs — not chasing headlines or reacting to short-term noise. Investments can go down as well as up. Returns are not guaranteed and you may get back less than you invest.

Beckett’s wealth management service is designed to incorporate high-level financial planning with a range of investment portfolios — built around your goals, your timeframe, and your genuine comfort with risk. We manage over £1.8 billion on behalf of more than 4,000 private and corporate clients.

Why Financial Protection Matters for Your Workforce

Statutory Sick Pay currently stands at just £116.75 per week — for a maximum of 28 weeks. For most employees, this falls significantly short of their regular income. Research by Legal & General found that the average UK worker would reach their financial limit in just 32 days without their regular pay.

Yet only around 1 in 10 employees has access to Group Income Protection through their employer. The UK’s income protection gap is substantial — and the employer is uniquely placed to close it, at group rates that are significantly lower than individual premiums.

The case for Group Life Cover is equally clear. The UK group risk industry paid out a record £2.59 billion in claims in 2024 — equivalent to £7.1 million every single day. Behind every claim is a family, a household, or a colleague whose employer had the foresight to put cover in place.

The Cover Options Available to Employers

These products are voluntary — there is no legal requirement for employers to provide them. But the protection gap they address is real, and the cost of providing cover is often lower than employers assume.

Group Life Cover (Death in Service)

A lump sum, typically two to four times annual salary, paid tax-free to an employee’s nominated beneficiaries if they die while employed. Premiums are a deductible business expense and are not a P11D benefit-in-kind for employees. Payouts are made via a discretionary trust, outside the employee’s estate for Inheritance Tax purposes.

Group Income Protection

Replaces 50–75% of an employee’s salary if they are unable to work due to long-term illness or injury, after an agreed deferred period (typically 13, 26, or 52 weeks). Benefits are paid to the employer and passed through payroll. Crucially, most Group Income Protection policies include rehabilitation services, early intervention, mental health support and Employee Assistance Programmes at no additional cost — helping employees return to work sooner and reducing the cost to the business.

Group Critical Illness Cover

Pays a lump sum on diagnosis of a specified serious illness such as cancer, heart attack or stroke. Cancer accounts for around 68% of all Group Critical Illness claims. Cover can help employees focus on their recovery without financial pressure, and is valued highly as a recruitment and retention tool.

What Becketts Does for You

1. Review your current position

We assess what cover, if any, is already in place — including any death-in-service arrangements tied to your workplace pension — and identify gaps relative to your workforce profile and business risk.

2. Advise on the right structure

We are independent, Chartered financial planners with whole-of-market access. That means we recommend what is right for your business — not what suits a particular insurer. We advise on benefit levels, deferred periods, policy ownership, and tax treatment.

3. Source and implement

We approach the market on your behalf, compare providers and terms, and manage the implementation process — from paperwork to employee communications.

4. Ongoing review

Your workforce changes. Your cover should keep up. We review your arrangements regularly to ensure they remain suitable for your business and your people.

Why Employers Choose Becketts

• Chartered Financial Planning Firm

Accredited by the Chartered Insurance Institute every year since 2011.

Certified B Corporation

Recognised for high standards of social and environmental performance, transparency and accountability.

Recognised Top Financial firm

Becketts is consistently recognised as being one of the top 100 financial firms in the UK by FT Adviser (a Financial Times publication) and New Model Adviser from Citywire

Established and trustworthy

38 years of helping clients and over £1.7 billion in assets under management

High Client Satisfaction

Score of 96 out of 10 private client satisfaction in a recent client survey

Employee Benefits FAQs

Is there a legal requirement to provide Group Life or Income Protection?

No. The only legally required employee benefits in the UK are auto-enrolment workplace pensions, Statutory Sick Pay, paid holiday, and the National Minimum/Living Wage. Group Life Cover, Group Income Protection and Group Critical Illness are entirely voluntary — but they are among the most valued benefits an employer can provide.

How much does Group Risk cover cost?

Costs vary depending on your workforce profile, benefit levels, industry, and the insurer. As a guide, Group Life Cover typically costs in the range of 0.2–0.5% of total payroll for office-based businesses. Group Income Protection is generally 0.5–1.5% of payroll. Because premiums are employer-paid and tax-deductible, the net cost to the business is lower than the headline premium. We provide a full cost comparison across insurers before you make any commitment.

What are the tax implications for the employer and the employee?

Group Life Cover premiums are a deductible business expense and are not a P11D benefit-in-kind for employees when held under a registered or excepted group life scheme. Payouts are tax-free. Group Income Protection premiums are also deductible and not a benefit-in-kind — benefits are paid through payroll as salary. Group Critical Illness premiums are generally treated as a P11D benefit-in-kind. Tax treatment depends on individual circumstances and may change.

Can we provide cover for just some employees?

Yes, in most cases. Many group schemes allow you to define eligible employees by category — for example, all permanent employees, or a specific grade or length of service. We advise on the most appropriate structure for your workforce.

What if an employee is already ill when we set up the scheme?

Most group risk policies include a free cover limit — a level of benefit up to which employees are automatically covered without needing to provide medical evidence. Above that limit, individual underwriting may apply. We advise you on how to structure cover to maximise the free cover limit for your workforce.