Group life insurance is a very simple employee benefit paying out if the employee dies whilst in employment with your organisation.
What is Group Life Assurance (Death in Service)?
A group life assurance scheme enables employers to provide a tax free lump sum benefit and/or a dependent’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 genuine care for staff welfare as well as encouraging loyalty and reassuring staff that they are valued.
Group Life Insurance and your business
Life insurance protection is now a very competitive market and needs to be reviewed on a regular basis as costs are falling due to mortality improving.
The Government have introduced legislation to enable company directors and their employees to have their personal life insurance paid for by the company, with the payment being allowable against the company’s corporation tax.
Many companies are not taking advantage of this relatively new piece of legislation and SMQ will be pleased to explain how this can work within your company.
What are the benefits?
Benefits for Employers
- It can be structured with premium rates that represent very low percentage of the employer’s payroll
- A Registered Scheme’s premium is usually allowable as a business expenditure thereby reducing the net cost to the employer.
- A wide variety of features can be incorporated into any scheme therefore meaning it can easily reflect an employer’s requirements.
- Group life insurance is a very simple employee benefit paying out if the employee passes away whilst in employment with your organisation.
- Having Group Life cover in place means employers can contribute invaluable financial support to beneficiaries.
Benefits for Employees
- Any premiums paid on an employee’s behalf are not treated as a benefit in kind.
- Policies will pay our whether the death occurred at work or not.
- Any lump sum benefit is normally payable outside an employee’s estate and free from Inheritance Tax liability*
- A group life assurance scheme can provide peace of mind and reassurance.
- Each employee is covered multiple of their gross earnings which is determined by the business upon setting up the policy.
- Additional Benefits include an Employee Assistance Programme and Bereavement Service.
SMQ Services Ltd is an appointed Representative of Health and Protection Solutions Ltd. Health and Protection Solutions trading as The Health Insurance Group is authorised and regulated by the Financial Conduct Authority.