Canada Life has simplified the processes and requirements for firms whose employees wish to continue working beyond their Expected Normal Retirement Age (ENRA).
The provider says this is necessary in light of the Government's current review of the default retirement age and intention of more adults to work beyond the present standard retirement age.
Its deferred retirement option is now available on both group life and group income protection (GIP) insurance, making it easy to provide cover for those who want to continue working.
It has also enhanced its temporary cover arrangements to help reduce the potential risk of under-insurance for employers.
Assuming the employer has included the deferred retirement option, those working beyond their ENRA and who are below the free cover limit, will only need to be ‘Actively at Work' on the date they reach their ENRA, to be automatically covered.
Employees will remain covered for group life to age 75, unless their contract with their employer ceases or they have been absent for more than 12 continuous months.
Similarly, GIP will also remain in force through to the cover cease date agreed in writing with the employer, the date the member leaves service or age 70, if sooner.
Temporary cover will now be provided for group insurance products for up to 120 days from the date the member joins the policy or the effective date of any benefit increase.
This will reduce the potential risk of under-insurance for employers before the employee's medical underwriting has been completed.
The maximum amount available on group life assurance is being increased to a sum assured of £3.25 million, and loaded cases will now also be eligible.
Paul Avis, sales and marketing director at Canada Life Group Insurance, says: "We want to make it as easy as possible to provide cover for those who elect to work beyond ENRA, so we've greatly reduced our requirements.
"With deferred retirement, both employers and their employees will be in no doubt whatsoever about cover beyond age 65, at a time when retirement arrangements are undergoing rapid change.
"Also, from now on, it will be entirely clear when temporary cover starts, and for how long it lasts.
"Moreover, the increased period for which it applies will make life easier for our clients, their advisers and the affected individuals," he adds.
