Group Life Insurance and Income Protection
Group Life Insurance (also known as “Death In-Service)

A group life insurance policy is set up by an employer to provide a lump sum benefit (and sometimes a dependent’s pension benefit) should an employee, who is a member of the scheme, die while in service. The maximum amount that can be paid out tax-free is 4 x Salary so this is what employers typically offer. If a dependent’s pension is selected, this is paid and taxed as income. This is an excellent benefit that gives employees’ families financial security in the event of that employee’s death during service. 

How it works:

You can write off the costs of providing the benefits against corporation tax while giving employees and their families peace of mind. There are many advantages to arranging a group life insurance scheme, one being that the underwriting requirements are far less stringent than they are for individual life insurance policies. There is a free cover limit offered by the insurer which means that it is not necessary to have a medical. This is based on the number of people being covered and the levels of cover being offered. All members below the free cover limit do not need to be medically underwritten, which means that no further medical assessment is required. The costs of these schemes are significantly lower than equivalent individual life insurance coverage. 

To provide a quote for group life insurance, all we need is a list of employees’ dates of birth, salaries, gender and the level of cover you would like to provide. We will prepare a report with quotes from multiple companies. We will confirm the benefit structure, the sum assured, the free cover limit, the number of members and costs. 

Once you have confirmed which company you would like to proceed with, we will send you a proposal form and a booklet explaining the benefits. We will also provide an excel template to be completed with members’ dates of birth, occupation gender and salaries. Any members over the free cover limit will need to complete a proposal form to be covered for the amount over this limit. 

Group Income Protection

Would you like your employees to be able to maintain their standard of living should they fall ill or have an injury? By offering group Income protection as part of your employee benefits package, you are offering support to your employees when they need it most. You can choose the level of benefit – it is usually calculated as a percentage of salary which will be paid after a deferred period (this is the time an employee must be out of work before they can submit a claim) which usually is 13, 26 or 52 weeks. This will be paid out until retirement age or until your employees are fit to return to work.

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