Group cash plan

Category: Health benefits · Reviewed by Mark Fox, Broker · Renewals · Last reviewed 2026-06-10

A group cash plan is the employer-funded variant of a healthcare cash plan, provided as an employee benefit. The policyholder is the employer; the insured persons are the employees; and the cover provides reimbursement up to defined annual limits for routine healthcare expenses. The product is identical to an individual healthcare cash plan but offered to all employees at a discounted multi-life rate.

Category: Health benefits Also known as: Employer-paid cash plan Related concepts: Healthcare cash plan, Dental plan group, Wellbeing benefit

Definition

The group cash plan typically offers a flat benefit per employee (e.g. £150 of dental, £100 of optical, £300 of physio per year), with optional buy-up for partners and children at the employee’s expense.

Legal / Regulatory basis

See healthcare cash plan. FCA regulated under ICOBS; tax treatment under ITEPA 2003; IPT applies.

Scope of cover

See healthcare cash plan. Typical limits at the lower price points are modest but cover frequent everyday expenses.

Practical example

An employer adds a £130 per employee group cash plan to its benefit package. Take-up is 100% (because the employer pays); cash plan provider data shows average annual claims of £95 per insured life, generating an experience-rated renewal.

See also

References

  1. Financial Conduct Authority, FCA Handbook, ICOBS — https://www.handbook.fca.org.uk/handbook/ICOBS/
  2. Income Tax (Earnings and Pensions) Act 2003 — https://www.legislation.gov.uk/ukpga/2003/1

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.

Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.

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