BHSF Pay4Sure
BHSF’s new Pay4Sure plan is a short benefit term sickness and accident style insurance that pays an income if an employee is off work for between one and six months due to sickness or injury. The plan is taken out through the employer, with employees opting in to be covered and then paying premiums monthly through payroll deduction.
The plan also includes a comprehensive employee assistance programme (EAP) and a 24/7 GP consultation service. The latter is accessed by phone or an online webcam consultation, and there is also an electronic private prescription service. The EAP offers employees counselling on stress, debt, bereavement and other issues.
Three benefit levels are available - £500, £1,000 or £1,500 a month. That is paid after the employee has been off work because of sickness or injury for more than 30 days. There is an initial qualifying period of 14 days for injury claims and 90 days for illness claims. Back and mental health claims are subject to the stricter criteria common on general insurance plans (e.g. the latter must be certified by a consultant).
Exclusions are fairly standard and include most dangerous pastimes, semi and professional sports and having a blood alcohol limit of over 80mg per 100ml of blood (the drink driving limit except in Scotland).
The monthly premium is not age rated and is £10.18, £20.37 or £28.30 a month (including Insurance Premium Tax) based on the benefit level chosen. Pre-existing conditions are excluded for a continuous period of 24 months after cover starts. Employees must be aged 16-67, working at least 16 hours a week and living in England, Scotland or Wales (the plan is not available in Northern Ireland).
Comment: In an ideal world, employers would have a sick pay scheme that pays a good benefit quickly, provides help when needed and lasts as long as necessary. For many employees though, this does not exist. Even where a group IP schemes is operating, there may be a gap where the employee has to rely on (low) State benefits. To meet that need, Pay4Sure has been devised.
It’s simple with no upfront underwriting, no age ratings and just three benefit levels to choose from. There is also a comprehensive EAP and GP services – both of which can be very useful, even if a claim is not made.
But those attractions are countered by there being limited benefit options, a rolling moratorium, and the maximum benefit period is just six months. As this is not long term IP, premiums are subject to IPT.
That said, where the plan does fit well with an employer’s scheme, and where the cover level is just what is required, the plan is worth looking at. Otherwise long term IP may be a better solution for many.
Plus points: Simple to understand and buy; Paid by payroll deduction; Useful EAP built-in; Valuable GP services; No upfront underwriting; No age ratings.
Not so plus points: Three benefit levels only; Premiums subject to IPT; Some exclusions; May not fit with employer’s sick pay arrangements; Needs the employer to facilitate the scheme; Long term IP may be a better deal for some.
Website: www.bhsf.co.uk.
Rating (max 10): Innovation: 7. Overall: 7. Silver
Tags: ASU; BHSF