Group Life Insurance

Life cover is the most common employee protection product, with benefit being paid in the event of the death of an employee while employed by the company.

The benefit is paid as a lump sum calculated as a multiple of the employees’ annual salary, with the multiple determined by the employer when setting up the plan. Employees who have access to a flexible benefit programme can choose to increase their benefit limit and pay an additional premium from a flexible benefit fund or via salary sacrifice.

Life cover is often perceived as a straightforward employee benefit, but complexities can arise, especially as certain types of life cover fall within the scope of pensions legislation and any associated tax rules, which can often be changed by the government of the day with little or no prior warning.

Care must therefore be taken by employers when setting up or reviewing a group life plan, and consider not just employee salary levels and benefit multiples, but also pension arrangements and any relevant pensions and tax legislation, when deciding what type of scheme best meets their needs.

If this is something you would like to explore, the Broadstone team have a wealth of experience in consulting with you to help guide you towards the most appropriate benefit levels for your business.

Complete the form below if you are interested in Group Life Insurance for your workforce and we would be happy to help you take the first step.