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 is a term insurance plan that does not accumulate cash value. Because group life insurance is employer-sponsored term insurance, it provides more protection at a lower cost than individual life insurance.
A group life assurance scheme can offer, in the event of an employee’s death whilst they are on your payroll, a multiple of salary (i.e. 2 or 4 x salary) and/or a fixed amount as a lump sum benefit to the employee’s family and dependents.
A death in service pension can offer a regular income to an employee’s dependents with this being based upon a percentage of an employee’s salary or, in some circumstances, their prospective pension. It is also possible to include benefits for surviving children which can either be in addition to the spouse’s pension or payable should the spouse also die. Any spouse’s and children’s pensions can be payable on a level basis or increase in the course of payment by an agreed rate of escalation or by the Retail Prices Index.