We are seeing a highly competitive job market combined with capacity pressures for many businesses. Retention and recruitment of talented staff is a key concern and being able to stand out from the competition is crucial.
Employee benefits are a great way to do that – they can provide valuable benefits for current and future employees. One benefit you could consider is Group Life Insurance.
What is Group Life Insurance?
Group Life insurance is considered a foundation employee benefit and is one of the most highly valued by employees and their beneficiaries.
It’s a cover that is designed to provide a lump sum payout to beneficiaries if an employee dies whilst covered by the policy.
Generally, the level of cover is set up as a multiple of salary, for example, if an employee is paid £30,000 and there was a multiple of 3 x £30,000 benefit in place, on death their beneficiaries would receive £90,000 tax-free.
Why should you consider Group Life Insurance?
- It may be cheaper than you think: The average cost of a £100,000 benefit is around £100 per annum per employee, and the cost per employee is typically much lower than what your employees would pay if they bought life insurance themselves.
- It’s the perfect partner to a pension plan: It provides retirement security when your employee’s pensions may be small.
- No medical questions: With the insurance covering all employees in the organisation, or within a clearly defined group or management grade, in most cases your employees won’t need to answer any medical questions.
- It’s tax efficient: The premiums you pay are not treated as a P11D benefit for your employees, so there is no tax charge for the member. The premium payment is considered a business expense for corporation tax purposes and a relieveable expense for partnerships and sole traders.
Working relationships are more than just professional relationships; the personal bonds between colleagues are strong. As an employer, it’s important to consider how you might deal with the death of an employee and how you’d like to be able to support the bereaved family.
As well as the provision of a lump sum death benefit many providers offer a wide range of free additional support services to staff and family, such as:
- Employee Assistance Programs: Provides valuable Services such as live GP consultations and telephone counselling services to support health and mental wellbeing.
- Bereavement and Probate support: Telephone support for Directors, Line managers, Employees and the loved one’s family. Also the provision of practical support to help the family deal with practical issues such as registration of death or advice on what to do if no will has been left.
The best things we do in life, we do for others. Being there for your employees and their family in a time of need is the right thing to do. With a group life insurance policy in place, you can make sure they’re looked after and supported, financially and emotionally.
Get in touch
If you have any questions about Group Life Insurance, please get in touch.