Insurance can sometimes form part of a workplace employee benefits package. Depending on the employer and the scheme, this might include covers such as life insurance, income protection, trauma, total and permanent disability cover, or health insurance.

Workplace cover can be a useful added benefit, but it is worth understanding exactly what is provided and how it fits alongside any insurance you hold personally. Your SHARE insurance adviser can help you look at the bigger picture, including the amount of cover, any potential gaps or overlaps, and what may happen if your employment circumstances change.

What type of cover do you have?

Start by checking what insurance is actually included in your employment package. Some employers pay the full premium for group cover, while others may subsidise a workplace scheme or provide access to group pricing.

The types of cover can also differ. Life insurance generally pays a lump sum following death or, depending on the policy, terminal illness. Income protection may provide regular payments if illness or injury prevents someone from working. Trauma cover can provide a lump sum for certain defined medical conditions, while health insurance can help with eligible medical treatment costs.

If you have workplace insurance, it’s worth sharing the details with your SHARE insurance adviser. They can help you understand how this cover fits alongside any existing personal policies and identify areas that may need further consideration. You may need to obtain the relevant scheme or policy information from your employer to support this review.

Check the amount of cover

Knowing that you have workplace insurance is only part of the picture. It is also important to know how much cover you have. Group life cover, for example, might be set at a fixed amount or calculated as a multiple or percentage of salary. Other benefits may have their own limits.

Check who is covered, when the cover starts and whether the amount changes if your salary or employment status changes. It is also worth confirming who receives any benefit payment, because this can depend on how the workplace scheme is structured.

Understand the conditions

Like personally owned insurance, workplace policies can have definitions, limits, exclusions and other conditions that affect when a claim may be paid.

Depending on the type of insurance, there may be a waiting period before a benefit becomes payable, or a benefit period that determines how long payments can continue. Health policies may have limits or exclusions for particular treatments, while life, trauma and disability policies will have their own definitions and claim criteria.

Rather than relying only on a summary of the employee benefit, it’s worth reviewing the relevant policy information and asking questions about anything that is unclear.

What happens if you change jobs?

This is one of the most important details to check. Workplace insurance is usually linked to your employment or eligibility for the group scheme, so some or all of the cover may end when you leave the organisation.

Some schemes may provide an option to continue or convert certain cover to an individual policy, sometimes subject to conditions and time limits. This is not automatic across all workplace schemes, so it is worth finding out what applies ahead of time.

If you are changing jobs, it’s worth speaking with your SHARE insurance adviser about how this may affect your overall protection. They can help you consider any potential gaps between your existing workplace cover ending and new benefits beginning, and whether your personal insurance arrangements need reviewing.

How does it fit with personal insurance?

Workplace insurance and personally owned cover can work alongside each other, but having both does not necessarily mean every benefit will simply be added together.

It can be useful to compare the type and amount of workplace cover with any insurance you already hold personally. Check for gaps or unnecessary duplication and, for income-related cover, understand how benefits may interact.

Personally owned cover also has an important difference: it is not usually dependent on remaining with a particular employer, provided the policy remains in force and its terms are met.

Is your workplace cover enough?

There is no single amount or mix of insurance that will be appropriate for everyone. What may be suitable depends on factors such as your income, debts, dependants, savings, existing insurance, workplace benefits and what you want financial protection for.

Workplace insurance can form a useful part of personal risk protection, but it helps to understand what it does and does not provide rather than assuming the benefit will cover every need.

Want to talk?

Workplace insurance can be a useful addition to your overall protection, but it’s important to understand how it fits alongside your personally owned cover.

Whether you’re changing jobs, reviewing your employee benefits or simply wanting to understand what protection you have in place, your SHARE insurance adviser can help you look at the full picture and consider what may be appropriate for your circumstances.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.