Friends Life has launched the first employer funded group cancer workplace benefit in the UK.
The plan, Group Cancer Cover, is available to any company looking to insure 100 or more members of staff.
Premiums are likely to be around 30% lower than a critical illness policy on a like for like basis, Friends Life said.
Anna Spender, head of group protection proposition at Friends Life said the scheme was an "alternative" not a replacement to group critical illness cover.
The benefit will pay a fixed amount of £25,000 to employees who are diagnosed with a cancer covered by the plan.
The plan will be distributed via brokers and employee benefit consultants.
It also includes access to added value benefits - Cancer Support Service, Bupa HealthLine and Best Doctors.
Friends Life said there would be no underwriting on the plan and it would quote for all eligible staff. It is also using ABI definitions of cancer cover.
However, the insurer said the plan would exclude those members diagnosed with cancer or cancer in situ prior to joining their employer's scheme.
Recent figures from Macmillan Cancer Support showed there will be a "record high" 2.5 million people living with cancer in the UK in 2015 with 1 million of those in the workplace.
Spender added "Almost 70% of critical illness claims across the industry are related to cancer and while cancer incidence rates are increasing, so are survival rates. Given the research from Macmillan and an ageing work population, the prevalence of cancer in the workplace is likely to rise so we wanted to do something that would really benefit employees.
"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."
She concluded: "We began developing it after research by Capita Employee Benefits looked at what products employees valued against what employers actually provided. It means companies with budget constraints that may have little in the way of workplace benefits can take advantage of it and offer their staff valuable cover."