Group Life Insurance
A Tax Free Lump Sum for your Employees Family
What is Group Life Insurance?
Group Life Insurance enables employers to give a tax free lump sum to an employee's family and children should they die in service.
How does Group Life Insurance work?
If an employee is covered by your Group Life Insurance and dies while they are on your payroll then a tax free lump sum is payable to their family and dependents.
This lump sum is a multiple of their salary, for example, 2 or 4 x salary. The multiple is chosen by you as the employer.
A group life assurance scheme enables employers to provide a tax free lump sum benefit and/or a dependant's pension to an employee's family and children, if they should die in service. Provision of a group life assurance scheme goes a long way towards demonstrating an employer's duty of care.
Benefits of Group Life Insurance for Employers
- By Providing Group Life Insurance, you as an employer show you genuinely care for staff welfare as well as encouraging loyalty and reassuring staff that they are valued
- Premium rates usually represent a very low percentage of your payroll costs
- The Group Life Insurance premiums are usually allowable as a business expense thereby reducing the net cost to the employer through corporation tax relief
- Medical history evidence is often not required at all
- Having Group Life Insurance in place means employers can contribute invaluable financial support to beneficiaries
Benefits of Group Life Insurance for Employees
- Any premiums paid on an employee's behalf are not treated as a benefit in kind and therefore the employee will not have to pay additional tax
- Any lump sum benefit is normally payable outside an employee's estate and free from Inheritance Tax liability
- A group life assurance scheme provides peace of mind and reassurance to your employees
- Cover can be continued, up to a certain period, when an employee is absent from work due to sickness or taking, with an employer's consent, a sabbatical
Group Life Insurance providers we use
Being independent of any provider ensures we only recommend the very best cover from the leading providers. We compare the market on your behalf using: