Group Life Assurance

What is Group Life Assurance?

Sometimes referred to as Death in Service Insurance, Group Life Assurance pays a lump sum and/or a longer-term income to an employee’s family if they die while they’re employed by your company. Claims can be paid tax free as long as the scheme has been set up properly.

"With Group Life Assurance there are free cover limits, which means the majority of employees can usually join without having to provide medical evidence, unlike an individual policy that has to be fully underwritten. At Macbeth we specialise in setting up schemes like these – and we'll always review a policy annually to ensure the cover and costs remain competitive."

– Simon Claxton, financial services specialist at Macbeth

From flexible terms to tax-free payouts, you'll get a cost-effective policy that ticks all the boxes when you use a specialist broker like Macbeth to arrange Group Life Assurance for your business.

• Tax-free payout – usually three to four times the deceased employee’s salary
• No income tax implications – although your business pays the premiums, they aren’t treated as a benefit in kind
• Flexible policies – you can have different levels of cover for different pay grades and staff seniority

Why you should consider Group Life Assurance

• Compared to other employee benefits such as private healthcare and income protection schemes, Group Life Assurance is relatively cheap. 

• Millions could be at risk of a Death in Service Insurance payout pushing them over the Pension Lifetime Allowance. By setting up a policy in the right way, we can ensure this doesn’t happen.

• According to The Knowledge Academy’s analysis of data from Capita, 34.5% of UK employees chose life insurance as the benefit they’d most like to see as part of their benefits package.