Unum’s new Simple Group Life is a cut down version of its existing Registered Group Life policy. Key features include:
* One flat level of benefit. This can be from £50,000 to £100,000 per member.
* Guaranteed cover for all employees or all pension members, who have not yet reached State Pension Age and who are fit for work on the day membership starts. Discretionary entrants are not permitted.
* 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.
* 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.
What They Say
Head of proposition development Andrew Potterton said: “Listening to broker and customer feedback, we are taking the opportunity to refine our pricing approach, update our risk-related requirements and add value to our proposition to make life easier for employers looking to protect their staff with this essential benefit. We are committed to removing barriers, making the process straightforward and getting cover in place with the minimum of red tape.”
What We Say
"Not every employer offers death in service cover for its employees and for a variety of reasons. This plan has the advantage of providing a simple and low cost option that requires minimum management time. It even includes useful EAP benefits [although not everything that Unum offers].
"The main downside is that the benefit is a bit arbitrary and limited to £100,000 – roughly four times average salary. But, for intermediaries, that can open up the prospect of advising individuals on their actual life and more general cover needs, knowing that their employer is getting them at least part way there.
"In the right circumstances, this should help open up group risk to new customer firms, but its shortcomings need to be taken into account too."