Cash Plans have been around for a long time growing out of the need to pay for healthcare prior to the NHS being formed in the 1940’s. Preceding the First World War they were often referred to as Penny Funds or Saturday Funds, which was due to the fact that people would put a few pennies away each week when they got paid. Your great granny would have loved them and probably did.

So what has something that started over 100 years ago got to do with 21^st century healthcare needs?

Well a lot actually. Cash Plans have survived numerous economic downturns, two world wars and the development of the NHS. Great emphasis should be given to the NHS factor, which was supposed to mean people didn’t have to put money away as everyone’s healthcare needs would be met.

Cash Plans have survived the test of time through continual development; today they are notably more sophisticated, providing cash sums towards scans or including an EAP benefit with counselling. Yet they are still reminiscent of their very early existence, with typical benefits including cover for Dental, optical and out-patient care.

Employers can provide a base level of cover for as little as £1.00 per week but employees can expand this cover by increasing the weekly or monthly contribution. Even a £1.00 a week contribution can give a person access to a healthy level of benefits.

Company funded cash plan sales have been growing and cash plan providers are looking at developing their products. PMI providers that have in the past seen cash plans as the cheap alternative to PMI are now looking to develop this market in its own right and as a true compliment to a PMI plan.

By the end of 2009 there were nearly 2.8million contributors to health cash plans with the company funded element of this market growing by 36%, and from recent forums it is clear the market is likely to grow further. Why?

Well for one reason the government is trying to save £20billion from the NHS budget and it is difficult to see how this can be done without some reduction in services that are currently provided free at the point of delivery. Cash Plans are likely to become more relevant than ever.

Another reason is in these difficult economic times employers are looking for ways to provide valuable benefits that are relevant, appreciated and cost effective. Look no further than a Cash Plan.

There is not much your Great Grandmother was interested in that would still be relevant today but putting some pennies away each week in a Cash Plan (And it still is pennies OK at least 100) is probably one them.

We’ll keep you posted on developments but Jelf already has a range of Cash Plan options for clients.

Contact us or let us know your views on how valuable this benefit can be.