Benefits package for the smaller firm

For the past 15 years, Fulcrum has been helping employers, including the Law Society of Scotland, to negotiate employee benefit packages with insurance providers – chiefly private healthcare, income protection and employee life insurance. But we know first-hand that this isn’t a level playing field for small employers.

Put simply, insurance pricing is a balance between premium income and the likelihood and cost of claims. Large workforces offer insurers a “spread of risk”, so fewer health questions are asked, whereas the same benefits for employees in small firms are subject to a lot more health scrutiny – and they cost more. This is partly why arranging benefits never leaves the in-tray in some small businesses.

So why should you think again about starting your first benefits package? Record low unemployment, pressure on NHS and GP services, and the looming cost of living crisis are creating a perfect recruitment and retention storm, especially for smaller employers.

Life insurance is the most common insured employee benefit, but it usually requires disclosure of a lot of sensitive information just to get a quote, and the fact is it doesn’t make for the most uplifting employee benefit announcement.

We’ve turned this on its head with a greatly simplified offering, open to very small employers (including sole traders covering themselves and one employee). By setting the age limit at state pension age, we’re able to offer fixed benefits and prices that aren’t related to ages or salaries. There’s no quote process, no salary disclosure, and only one employer health declaration required.

We’ve also included a very strong support package that employers can actively promote. This includes free confidential mental health support, 24/7 GP video appointments, a world-renowned second medical opinion service, tailored help with diet and exercise, and more.

We’re delighted to offer this turnkey solution through our partnership with Canada Life, the UK’s largest group life insurer. There are four fixed life assurance options – £50k, £100k, £150k or £200k per employee, starting at £9 per employee per month.

An application received before 4pm on any working day means life cover can be in place on the next working day, with support services taking about a week to go live. There are no P11D tax implications for employees, benefits are tax-free as they’re written under a discretionary trust, and premiums are deductible as a business expense. The package also includes free HMRC registration and participation in Canada Life’s master trust.

For more information on Employee Benefits and how Fulcrum can help your firm negotiate packages fulcrumieb.co.uk

Fulcrum is authorised and regulated by the Financial Conduct Authority – firm reference 479266