Group Life Assurance (Death In Service)

Benefits for Employers

• Can usually be structured with premium rates that represent a very low percentage of the employer’s payroll.
• The registered schemes premiums are usually allowable as a business expense thereby reducing the net cost to the employer through corporation tax relief.
• A wide variety of features can be incorporated into any scheme therefore meaning that it can easily reflect an employer’s requirements.
• A group life assurance scheme can offer a Free Cover Limit therefore meaning that medical evidence is often not required at all.
• Having Group Life cover in place means employers can contribute invaluable financial support to beneficiaries. Group Life cover also plays a role in attracting and retaining staff, as it clearly demonstrates a business's commitment and care to employees.

Benefits for Employees

• Any premiums paid on an employee’s behalf are not treated as a benefit in kind.
• 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.
• Cover can be continued, up to a certain period, when an employee is absent from work due to sickness or taking, with an employer’s consent, a sabbatical.
• Employees who have had protection polices rated, with exclusions or cover not offered can receive up to free cover limit without medical underwriting.
• The above information regarding taxation is based upon our understanding of current legislation which, of course, is liable to change in the future and would depend upon an individual’s financial circumstances.