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.