Optimal Simple Group Life
Optimal’s new plan provides a choice of just £50,000 or £100,000 life covers for employers with a minimum of three lives to cover, with no upper member limit. The plan is targeted primarily at small and micro employers though.
Optimal was formed in late 2013 and is part of Gloucester based Holloway Friendly, best known for being the original provider of Holloway style income protection policies (which it still does). Optimal received approval in January 2014 and started writing group life business in March 2014.
A quotation can be provided in just a few seconds and the policy can be set up within minutes, Optimal says. Once set up, the premium remains the same for the year, even if new members are added. A master trust applies to the scheme.
Also included is a telephone employee assistance programme, which provides a 24/7 service to employees and their immediate family members. There is also an online health portal.
Comment: When we checked the website on 30 October, details of the new plan had not yet been added, but should be there by the time you read this.
Large firms will usually set up a group life scheme as part of a wider benefits package and choose benefits in line with what they think should be offered and how much they are prepared to pay. For smaller employers however, budget is often a key issue and they simply want to provide some life cover rather than a substantial sum. Accordingly, this plan should appeal to those employers who want to keep life simple and their expenditure low.
Only two sums insured are offered and setting up a policy is quick and easy. In effect getting free cover for new employees during a policy year should also appeal.
This plan won’t be for every employer, but if it encourages a small firm to offer life cover when it didn’t previously, it will have fulfilled an important role.
We understand that Simple Key Person cover will be offered soon too, which should help in a market where far too few firms currently protect themselves against such risks.
Plus points: Simple group life cover for small organisations; Simple and quick to get a quote and the policy up and running; All you need with no added complications; New employees can be added free until the next renewal date; Other types of group risk product are not yet available but there are more developments in the pipeline.
Not so plus points: Optimal is not yet well known in this sector; Only two sums insured available.
Website: http://www.optimalprotection.co.uk.
Rating (max 10): Innovation: 7. Overall: 7. Silver
Tags: Group life; Optimal