Group Life Insurance

Group Life Insurance protects your employees’ loved ones if an employee dies while working for you.

What is Group Life Insurance?

Group Life Insurance provides an employee’s family with a tax-free payment if they die while working for you. It’s a simple and affordable workplace benefit that shows your employees you care.

As an employer, you decide who to cover and the amount of cover available.

Key benefits of Group Life Insurance:

  • Life insurance for two or more employees
  • Choice of cover options, either in fixed amounts or multiples of salary
  • Cover groups of employees for different benefits
  • Employee’s family receives a tax-free payment
  • Easy to set up with simple yearly accounts
  • Additional value-added benefits vary per insurer with bereavement counselling for employee’s family and colleagues, legal support to help employee’s family with any probate issues. app based assistance programs, and Employee Assistance Programs (EAP’s) available.
  • Policies are set up under a discretionary trust, with a Master Trust is usually available.

A tax-allowable business expense with no P11d tax impact for your employees, and in many cases, no medical underwriting required. Group Life Insurance is a valued employee benefit that helps retain and attract employees.

How does it work?

Choose who you want to cover, the amount of cover and how employees join the policy.

  • Employee categories can set, enabling a hierarchy of benefit. This can be based on a multiple of salary – which can also include bonuses and commissions, typically averaged over the previous three years.
  • Choose to have a fixed amount per employee – this again can vary by employee category.
  • Set how long someone must be an employee before they can join the policy.
  • How old they need to be to enter, and how old when they leave. This is typically between 16 to 75.

Set up a discretionary trust to take out a policy or opt to use the existing Master Trust.

Once the policy is set up, the insurer will produce your accounts and invoice once a year using the updated employee data. Premiums can be paid monthly or annually.

If an employee dies, you make a claim. Once the claim and if it’s accepted, a payment to your discretionary trust will be made. The trustees will then pay the claim to the beneficiaries – normally the employee’s family or dependants.

Who can be covered?

We can cover a wide range of employees, including permanent, part-time, directors, zero-hour contract, fixed-term contract, and temporary employees.

Redundancy cover option

It is possible to cover any employee who’s been made redundant, for a maximum of two years. This cover starts from the date of redundancy.

Underwriting requirements

Most employees can be covered with a simple actively at work requirement and no medical underwriting. Insurance companies offer Free Cover Levels which vary dependant on the ages of the employees and value of the risk.