Group Life Insurance
A group life policy enables employers to provide a tax-free lump sum benefit payment, and/or a longer term income, to the family and dependents of an employee if they were to die during employment.
As well as encouraging staff loyalty and demonstrating a genuine care for staff welfare, provision of group life assurance also goes some way to reassuring employees that their efforts in the workplace are appreciated.
The main advantages of such a scheme are:
- Policies are very flexible and cover can be tailored to your specific requirements
- Generous free cover limits – reducing the need for lengthy medical evidence
- Implementation of the plan enhances employee relations
- Provides peace of mind and reassurance
- Premiums paid on an employee’s behalf are not treated as a benefit in kind and are therefore not subject to income tax
- Any lump sum payable to dependents is not subject to inheritance tax