Why checking your payment schedule every month matters

A simple step that helps protect your employees and your business

When you offer Employee Life Cover (ELC) and Employee Accident Cover (EAC), your payment schedule plays a vital role in keeping that protection in place. While it may feel like an administrative task, checking your payment schedule each month is one of the most important responsibilities you have as an employer.

Why is the payment schedule important?

Your payment schedule shows:

• Which employees are currently covered.
• The period of cover being paid for.
• The contributions or premiums due.

Why are monthly checks essential?

Checking your payment schedule every month helps prevent serious issues that could affect both your employees and your business.

If the information is incorrect:

• An employee removed in error will not be able to make a claim.
• An employee may believe they are covered when they are not, which could lead to distress and potential disputes.
• Cover cannot be backdated, and refunds cannot be issued if incorrect information was provided.

In short, inaccuracies can mean valid claims cannot be paid, even when contributions have been made previously.

Additionally, many employees see ELC and EAC as part of their employment benefits. If cover is missing due to an incorrect schedule, this could be seen as a breach of employment terms, particularly if the employee was informed that they have a cover in place. Regular checks help protect trust and ensure you are delivering the benefits you’ve promised.

Employees who have reached State Pension age

It’s also important to review employee ages on your schedule. While ELC itself has no upper age limit:

• Death in unemployment and death in incapacity cover are not available once an employee reaches State Pension age.
• Ensuring dates of birth are accurate helps avoid confusion and ensures cover is applied correctly in line with the rules.

What happens if payments are missed?

ELC and EAC are paid in arrears and collected by Direct Debit. If payment is not made when due, cover may stop, and claims will not be processed unless all contributions and premiums are up to date.

A small habit with big benefits

Monthly checks give you the opportunity to correct errors before they cause disruption. Taking a few minutes each month to review your payment schedule helps:

• Keep employee protection in place.
• Reduce the risk of claims issues.
• Maintain compliance with scheme rules.
• Give you confidence that your benefits are working as intended.

If you need more information understanding or completing your payment schedule, our support team is here to help.