Group Life Assurance
Reassure your employees (and their families)
Group Life Assurance
Life Assurance or Death in Service Insurance isn’t really a staff ‘perk’. It’s not really even about the money. But it is about reassurance. It’s also one of the easiest and cheapest benefit schemes to put in place.
What is Group Life Assurance?
Life Assurance (also known as death-in-service insurance) pays a lump sum and/or a long-term income to an employee’s family if the employee dies while employed by your company.
You may be wondering what the difference is between ‘assurance’ and ‘insurance’? There are lots of definitions but ‘insurance’ generally means a claim or compensation for damage or loss. Whereas ‘assurance’ relates to an eventuality such as death.
It’s called ‘group’ (which we know sounds a bit jargonesque) because it’s an open-ended, umbrella policy that covers a group of people or employees.
“Group Life Assurance has free cover limits, so most employees can join without providing medical evidence. And claims are normally tax free.”
– Vikki Claxton, Life Assurance specialist at Macbeth
How Group Life Assurance works
Unlike other types of life insurance, a group scheme is open-ended. So most employees can join the scheme without having to provide medical evidence.
We’ll do all the research to find you the most cost-effective policy and we’ll always try to source insurers that include bereavement counselling and probate helplines for the family too.
Your employee’s family will receive a payout around three to four times the deceased employee’s salary.
No income tax implications
Although your business pays the premiums, Life Assurance isn’t classed as a benefit in kind. So your employees won’t be taxed on it.
You can choose different levels of cover based on pay grade or seniority.
Why you should consider Group Life Assurance
Group Life Assurance is relatively cheap (compared to other employee benefits such as Health Insurance and Income Protection)
For many, a Death-in-Service Insurance payout will push them over the Pension Lifetime Allowance. But, by setting up a policy in the right way, we can ensure this doesn’t happen.
Group Life Assurance provides tax-free payouts, bereavement and probate advice and doesn’t require any underwriting.