WHAT IS GROUP LIFE INSURANCE?
Group Life Insurance pays out a lump sum or dependant’s pension death benefit to an employees’ family or next of kin in the event of an employee dying whilst employed by an organisation.
The cover is established as a single Group scheme that covers some or all employees within a business with a “death in service” benefit (sum assured). This is usually a multiple of individual employee salary, or as a lump sum flat benefit but can also be paid as a dependent’s pension.
WHY SHOULD I PROVIDE GROUP LIFE INSURANCE TO MY EMPLOYEES?
By providing Group Life Insurance to your employees, you can provide financial peace of mind for employees and their loved ones in the event of the employee dying.
The policy is affordable for employers and is hassle-free, with administration kept to the minimum.
HOW DOES GROUP LIFE INSURANCE WORK?
Group Life Insurance works in the same way as a regular life insurance policy by paying out a predetermined sum in the event the policyholder dies within the term of a policy. This is usually based on a flat lump sum or multiple of each employee’s salary, e.g. 2, 3 or 4x salary.
The benefit is tax-free provided cover does not exceed more than the employee’s available lifetime allowance.
The employee must be employed by the insured organisation at the time of their death in order for the benefit to be paid out. Group Life Insurance’s death in service schemes are annually renewable contracts which usually run until the employees’ normal retirement age.
Here at Busy Bees Benefits, we provide a range of benefits to help employers reward their employees, keeping them motivated and feeling valued. By providing your employees with group life insurance, your employees can rest assured knowing their family are taken care of. If you are interested in providing your employees with Group Life Insurance, talk to a member of our team today on 0330 333 9100 or email us on firstname.lastname@example.org.