Group Life Assurance

Peace of mind during times of crisis

Group Life Assurance is widely known as ‘Death in Service’ benefit. Thankfully, for the vast majority of your employees, the overwhelming benefit is simply peace of mind. And with less than a third of adults in the UK having any form of life insurance, you’ll be offering a very valuable benefit.

However, should the worst happen, your employees can rest assured that their beneficiaries will have a tax-free lump sum cushioning them from serious money worries.

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Group Life Assurance works like this:

  • You cover your employees for a multiple of their salary, usually between two and four times their gross salary.
  • The plan pays out a cash lump sum should they die while employed by your organisation.
  • Because the scheme is set it up under a trust structure, any claims can be paid to beneficiaries free from inheritance tax.

The benefits of Group Life Assurance

Benefits for your business

  • Often the cornerstone in building a good employee benefits package because of its affordability and widespread employee appreciation.
  • Helps you attract and retain talent as it puts you on a similar level with large employers who usually offer cover as a matter of course.
  • A group life assurance scheme will typically not require any health underwriting up to a pre-defined limit, often referred to as  the ‘Free Cover Limit’.  This allows cover to be provided more quickly, avoids inconvenience, and for many schemes means that medical evidence is often not required at all.  Even where benefits might go above this limit for some employees, it’s only the additional benefit above this that might be slightly delayed pending health underwriting.


Benefits for your employees

  • Any premiums paid on an employee’s behalf are not treated as a benefit in kind
  • Benefits are not subject to Inheritance Tax.
  • Provides peace of mind and reassurance
  • Can help to relieve money worries at a difficult time
  • Highly valued by employees
  • Employees can nominate and change their preferred beneficiaries

Budget considerations

  • One of the most cost-effective employee benefits available to employers.
  • Your premium payments are usually eligible for corporation tax relief.
  • Most insurers now offer a bereavement service to support the surviving loved ones.
  • Employee Assistance Programmes (EAP) often accompany many group insurance policies, offering a range of services to support employees and their families.

Find out more

To find out more or to discuss your options in more detail, the expert team at CLA Healthcare are on hand to help.

Call 01274 717361 or email to find out more.

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