Group Life Assurance provides a benefit on an employee’s death in service and is one of the most simple and cost-effective, but most highly valued employee benefits that a company can offer its staff.
Used on its own or as part of overall benefits package it can assist in attracting and retaining talent within your business, while at the same time demonstrating your duty of care and promoting your company culture as a caring and altruistic employer.
It is often also referred to as Death in Service benefit, although it’s important to note that the death does not need to occur at work for a claim to be valid.
If an employee were to die unexpectedly, Group Life cover can help ensure employee dependents receive financial assistance – relieving money worries at a very difficult and often the worst possible time.
The benefit is usually a tax-free lump sum payable to nominated beneficiaries or, more rarely, a taxable pension payable to the employee’s dependants, or even both.
Benefits are normally based on the employee’s earnings (up to a maximum multiple of annual salary) or as fixed lump sum amounts, and these can be tailored to meet an employer’s specific Demands & Needs, and those of their staff.
Generally, premiums paid by an employer can be offset against corporation tax and are not regarded as a P11d benefit in kind for employees.
Trustee(s) are appointed by the sponsoring employer and can be a group of people, or a company. They are responsible for administering the policy, establishing the appropriate beneficiary in the event of a claim, and making payments to beneficiaries.