Group Life Assurance in Focus

Download the Free Guide (PDF)

Executive Summary

This guide provides a concise overview of Group Life Assurance, including how it works, who it’s suitable for, and the key features to be aware of.

What is group life assurance?

• Also known as death-in-service insurance
• An employee benefit that pays a lump sum and/or long-term income to an employee’s family if they die while employed
• A single, open-ended policy that covers a group of employees
• Often includes additional benefits employees can access while they are still alive

Who is it for?

• Businesses with one or more employees
• Businesses looking for a simple benefits package
• Businesses wanting to provide tax-free benefits for employees

How does it work?

• You take out a single policy to cover all employees
• Employees can be added or removed as they join or leave
• If an employee dies while employed, their family receives a multiple of their salary (e.g. three or four times), set by the employer
• Policies include a ‘Free Cover Limit’, meaning employees are covered up to a certain level without medical checks

Key features:

• Lump sum or income paid to an employee’s family
• Tax-efficient benefit (not classed as a benefit in kind)
• Flexible policy that can be updated as your workforce changes
• Added-value support such as bereavement counselling and probate helplines

Things to consider:

• Level of cover is set by the employer (e.g. salary multiples)
• Cover can be tailored based on employee pay grade or seniority
• Policy terms and included benefits vary by insurer

This guide is perfect for businesses looking to provide simple, meaningful financial protection for their employees and their families.