Group Life Assurance
Group life assurance enables employers to provide a tax-free lump sum benefit payment, and/or a longer term income, to an employee's family and dependants if they should die in service. As well as encouraging staff loyalty and demonstrating a genuine care for staff welfare, provision of group life assurance also goes some way to reassuring employees that their efforts in the workplace really count.
Group life assurance offers a multiple of salary or a fixed amount as a lump sum benefit to an employee's family and dependants should they die in service. A death in service pension offers a long term income to the employee's dependants, which can be based upon a percentage of, either, the employee’s salary, or, prospective pension. In addition to a spouse's pension, benefits may be provided for surviving children or orphans if the surviving spouse also dies.
Benefits can also be protected against inflation by including an escalation option. This means that any pension payable will increase over time at an agreed rate or in line with the Retail Prices Index.
- Competitive premium rate
- ‘One time’ underwriting for flat rate clients
- For registered occupational pension schemes, premiums are usually allowable as a business expense and enjoy corporation tax relief, thus reducing the real cost
- Wide variety of options contained in the plan means that the right plan can easily be constructed
- Multinational pooling facility through partnerships with Insurope and IGP
- Generous Free Cover Limits - reducing the need for lengthy medical evidence
- Implementation of the plan enhances employee relations
- Easy administration
• Provides peace of mind and reassurance
• Premiums paid on an employee's behalf are not treated as a benefit in kind, so are therefore not subject to income tax
• Any lump sum payable to dependants is not subject to Inheritance Tax
• Temporary absence cover when an employee is absent from work
Group Life policies are written under Trust, and it is at the Trustees’ discretion to whom any benefits settled should be paid.
Information regarding taxation is based on our understanding of current legislation, which may be altered and depends on the individual’s financial circumstances.
If you would like more information on setting up a Group Life scheme for a client, please visit our 'specific requirements for Group Life cover' web page, or call us on 0845 223 8000.
Requirements for an Excepted Group Life Policy
Technical Guide - Group Life Assurance for Death in Service Benefits under Registered Occupational Pension Schemes
Technical Guide - Excepted Group Life Policy for lump sum death in service benefits
Group Life Assurance Sales Brochure
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