Does your business offer group life insurance as part of its employee benefits package?
This form of insurance protection is becoming increasingly sought after by employees, exacerbated by the recent economic uncertainty and cost-of-living crisis.
Introduction
Group life insurance, or death in service as it is otherwise known, is an employer sponsored insurance scheme which provides a lump sum in the event an employee dies during their employment.
Typically, these arrangements are offered to a workforce as part of a wider, more complete, employee benefits package and have been found to positively affect the mental wellbeing of the workforce.
Typical benefits
- Financial support for the bereaved family – A lump-sum benefit is provided if the employee dies in service. There are no limitations on how the sum can be used.
- Ongoing emotional support –Many policies include bereavement counselling for the employee’s family, as well as colleagues.
- No Inheritance Tax liability – Often, the lump sum provided will not form part of the deceased estate and therefore there is no inheritance tax liability for the beneficiaries.
- No additional tax liability – The lump-sum in most cases will not be classed as a ‘benefit in kind’ meaning that there will not be any additional tax payable.
Finding a cost-effective solution
If you have cover in place, but have seen an increase in in cost at renewal, now may be the time to consider a review to find a more cost-effective solution.
How can we help you?
If you would like assistance with group life insurance or other insured benefits, or if you wish to arrange an initial no cost, no obligation, consultation, then please fill out the contact form below. Alternatively, you can call 01603 706 820 or email info@lffp.co.uk.
Important information
The contents of this article do not constitute financial advice.
