GROUP LIFE
INSURANCE
Enhance employee well-being with Group Life Insurance
As a business owner in the UK, prioritising the welfare of your employees is not just a duty but a strategic move that pays off in loyalty and dedication. One way to demonstrate genuine care and provide essential support to your employees' families is through a Group Life Insurance scheme.
What is Group Life Insurance?
A Group Life Insurance scheme allows employers to offer a tax-free lump sum benefit or a dependent's pension to the family and children of an employee who passes away while in service. This proactive step not only showcases your commitment to staff welfare but also fosters loyalty and assures your employees that they are truly valued.
Group Life vs. Individual Life Insurance
Similar to individual life insurance, group life insurance is a term plan without cash value at the end of the plan. Being employer-sponsored term insurance, it offers enhanced protection at a more affordable cost compared to individual policies.
Key Features of a Group Life Scheme
Lump Sum Benefit: In the unfortunate event of an employee's death, the scheme can provide a multiple of their salary or a fixed lump sum to support their family.
Free cover limit: You can cover the majority of your employees, up to a certain level of benefit, without needing to divulge their medical information.
Support: Whilst group life providers provide financial support to loved ones if an employee dies in service, many offer additional benefits such as bereavement support for those left behind.
Prompt Payment: Typically, most payments are made within 7 days.
Flexible Cover: Group Life cover offers a great deal of flexibility. You can choose different levels of benefits for different types of employee; such as directors, managers and staff, or the same level of benefits to all. By offering Group Life alongside other Group Protection policies you can build a benefits package which really stands out and supports you and your workforce.
Wellbeing services: Many Group Life providers' cover looks after the employee's life as well, with access to a range of everyday health and wellbeing services, as well as other benefits such as valuable legal support.
Benefits for Employers
Cost-Effective: Premium rates can be structured to represent a minimal percentage of the employer's payroll.
Tax Relief: Registered scheme premiums are typically allowable as a business expense, reducing the net cost through corporation tax relief.
Customisable: The scheme can be tailored to meet specific employer requirements, reflecting their commitment to employee welfare.
Free Cover Limit: Offering a Free Cover Limit eliminates the need for medical evidence in many cases.
Attracting and Retaining Talent: Group Life Insurance contributes invaluable financial support to beneficiaries and plays a crucial role in attracting and retaining staff by showcasing a business's commitment and care.
Benefits for Employees
Tax Efficiency: Premiums paid on behalf of employees are not considered a benefit in kind.
Inheritance Tax Exemption: Lump sum benefits are typically payable outside an employee's estate, free from Inheritance Tax liability.
Peace of Mind: A Group Life Assurance scheme provides employees with peace of mind and reassurance about their family's financial security.
Continued Coverage: Coverage can be continued, with employer consent, during employee absences due to sickness or sabbatical.
Accessible Coverage: Employees with protection policies rated or with exclusions can receive coverage up to the Free Cover Limit without medical underwriting.
Additional Benefits
Critical Illness Cover
Most providers of group life arrangements also allow critical illness cover to be included or added to the scheme. Critical Illness provides a valuable employee benefit in which the employee will receive a tax free lump sum on diagnosis of a specified illness covered by the policy. Includes access to a range of practical, emotional and medical support.
Income Protection
Income protection benefits can also be provided via a group scheme. This type of employee and business benefit provides sick pay arrangements both short term and long term if desired. It provides a regular income if an employee cannot work because of sickness or injury. Early intervention services can help employees back to work sooner.
It's essential to note that tax information is subject to change and dependent on individual financial circumstances. Invest in the well-being of your team and enhance your company's standing by implementing a Group Life Assurance scheme today.