Group life insurance
Group life insurance is a type of life insurance in which a single contract covers an entire group of people.
Group life insurance is often provided as part of a complete employee benefit package. In most cases, the cost of group coverage is far less than what the employees or members would pay for a similar amount of individual protection.
Group life insurance cover is usually designed to pay a lump sum benefit on the death of an employee.
For employees, group life insurance provides the following benefits:
- Peace of mind knowing that a provision has been made for dependants
- A lump sum and/or an ongoing pension option to cover some of a dependant’s most significant costs
- An immediate lump sum that is normally free of inheritance tax and paid out quickly as it is provided under a discretionary trust
For employers, group life insurance provides the following benefits:
- A highly valued benefit package through a simple, flexible and cost-effective policy
- Part of a complete and attractive benefits package helping to recruit and retain high calibre staff
- Premiums are treated as a trading expense for the purpose of corporation tax relief
- Premiums paid by the employer are not treated as a taxable benefit on the employee and do not attract any additional National Insurance liability on either the employee or the employer
- Lump sum paid on death will normally be free of any inheritance tax
Premiums and service from the life companies differs so experienced independent financial advice is essential.
Any questions on group life insurance?
Please call us on 01582 839280 or Email us.
