Unum Simple Group Life
Unum’s new Simple Group Life is a simplified version of its existing Registered Group Life policy and its key features and benefits include:
There is one flat level of benefit, which can be from £50K to £100K per member.
Guaranteed cover for all employees or all pension members who are below State Pension Age and who are fit for work on the day membership starts. Unum does not allow discretionary entrants under this plan.
There are no medical underwriting forms.
The plan is available on an employer-funded basis only.
Minimum membership is 20 employees.
Unum’s free master trust is included in the package.
There is a freephone helpline and online support from Unum’s Employee and Employer Assistance Programme (EAP), which includes referrals to local child and elder care services and educational resources, but not legal or counselling support.
A three year rate guarantee is now standard.
New business and mid-rate guarantees are avoided for membership changes up to 30%.
Temporary cover for members needing medical underwriting is now three months from policy start or renewal.
Cover can last to age 75.
A comprehensive bereavement service, including phone counselling sessions and an information pack.
Comment: Many employers still do not offer death in service cover for their employees for a variety of reasons. This plan may appeal to such firms as it offers a simple low cost option that requires minimum input from the firm. Although simple, the plan includes some useful EAP benefits (although not everything that Unum offers or that is available in the wider market).
So what’s not to like? Well, the £100K benefit limit is somewhat arbitrary and amounts to less than four times the UK average salary. But, the point is that many firms are not interested in providing more comprehensive cover (or may not be able to afford it). For them, this plan offers an easy to buy solution and for intermediaries, there is always the option of offering individual protection advice to employees to discuss their actual needs. At least their employer will be getting them part of the way there.
For the right customer, this plan could help open up group risk as an employee benefit. But, it is very much a starter plan, so its shortcomings need to be taken into account too.
Plus points: This is life cover at its simplest and it’s easy and inexpensive to buy too; Some EAP benefits are included; Ideal if an employer wants to offer a fixed sum up to £100K for all its employees.
Not so plus points: The one size fits all approach is simple but limiting; Customers only get access to some EAP benefits; The upper limit of £100K is relatively low.
Website: http://www.unum.co.uk.
Rating (max 10): Innovation: 7. Overall: 7.5. Silver
Tags: Group life; Unum.