Group Life Assurance
A Group Life Assurance scheme enables employers to provide a lump sum payment to an employee’s family, children or any chosen beneficiaries if the employee dies.
Provision of a Group Life Assurance scheme goes a long way towards demonstrating an employer’s genuine care for staff welfare as well as encouraging loyalty and reassuring staff that they are valued.
Benefits for Employers Who Use These Schemes:
- 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.
- A wide variety of features can be incorporated into any scheme meaning that it can easily reflect an employer’s requirements.
- A Group Life Assurance scheme can offer a Free Cover Limit meaning that medical evidence is often not required at all.
- A well-promoted scheme can enhance staff loyalty.
Benefits for Employees:
- Premiums are fully paid by the employer and are not treated as a benefit in kind.
- Any lump sum benefit is normally paid outside an employee’s estate and free from any Inheritance Tax liability.
- A Group Life Assurance scheme provides peace of mind and reassurance.
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.
Contact us today to see how we can advise you on you Group Life Assurance.