Group Life Assurance
Group life assurance enables employers to provide a tax-free lump sum benefit payment, and/or a longer term income, to an employee’s family and dependents if they should die in service. 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 really count.
Group life assurance offers a multiple of salary or a fixed amount as a lump sum benefit to an employee’s family and dependents should they die in service. A death in service pension offers a long term income to the employee’s dependents, which can be based upon a percentage of, either, the employee’s salary, or, prospective pension. In addition to a spouse’s pension, benefits may be provided for surviving children or orphans if the surviving spouse also dies.
Benefits can also be protected against inflation by including an escalation option. This means that any pension payable will increase over time at an agreed rate or in line with the Retail Prices Index.
Benefits for your employees:
- Provides peace of mind and reassurance
- Premiums paid on an employee’s behalf are not treated as a benefit in kind, so are therefore not subject to income tax
- Any lump sum payable to dependents is not subject to Inheritance Tax