Friends Life has launched Group Cancer Cover, an employer-funded cancer-specific workplace cover for firms wanting to insure 100 or more members of staff.
Anna Spender, head of group protection proposition, said the product would be distributed through brokers, and was intended as a more affordable alternative to critical illness cover.
Ms Spender said: “Almost 70 per cent of critical illness claims across the industry are related to cancer, and while cancer incidence rates are increasing, so are survival rates.
“Group cancer cover has been designed to be affordable and simple, providing a level of benefit to help with the additional costs that people face while going through cancer treatment.”
■ It will pay out a fixed amount of £25,000 to employees who are diagnosed with cancer while covered by the plan.
■ The cancer protection product will be roughly 30 per cent cheaper than the full critical illness product.
■ The new product will not pay out if a member has been diagnosed with any form of cancer or has cancer before joining the scheme.
■ Members of the scheme will also have access to services such as the Bupa Healthline and Working Towards Wellbeing’s cancer support service.
Pete Cassar, a financial adviser with Nottinghamshire-based Clarendon Financial Solutions, said: “It sounds like a good idea because what most employees fear more than anything is cancer, and if it’s going to be cheaper and if it’s going to cover cancer that can only be a good thing.
“We all know the cost of critical illness, and it is better to have some cover than no cover.”