Protecting your employees when they need it most
Group Life Insurance is a form of benefit that is provided for an employee’s family or dependants upon their death and is usually based on the employee’s earnings (e.g. up to 12x their annual salary) but this can be tailored to the employer’s policy needs. Group Life Insurance is often the sole life insurance provision that low to middle income earners will have to support them should the worst happen. The protection they receive from this insurance can provide essential financial protection together with emotional support for your employees and their dependants.
Financial support available
Depending on the type of policy, in the event of an employee’s death, a lump sum will be payable to the employee’s dependants. Additionally, many Group Life Insurance Policies operate within Her Majesty’s Revenue and Customs’ (HMRC) regulatory framework for a ‘registered occupational pension scheme’ which means that lump sum death benefits can be paid tax-free up to the Pension Lifetime Allowance (the limit on pension benefits which can be paid without triggering an extra tax charge). Broadstone can explain the different scheme types available and work with you to implement a scheme which best suits your needs.
Emotional support available
Many policies will go beyond financial support and provide additional support services to employees. Broadstone will review and explain the support services available for you with your policy.
Not just an employee benefit
The critical nature of Group Life Insurance makes it such a high-value benefit to employees and therefore having it as part of your benefits package is a great way to demonstrate how much you care about your employees. Additional perks include:
- Helping to attract staff to your business when recruiting and also retaining your most talented people.
- Various cover options available to suit your needs and budget – it often costs less than employers think and is much cheaper than employees would pay if they set up their own life cover.
- Bringing peace of mind to your employees and increase their engagement at work and with their benefits.
- Providing Group Life Insurance is a great indicator of your company culture and values. It demonstrates your duty of care as an employer, helping to strengthen employee relations.
- A Master Trust option is available on certain policies for employers looking to benefit from additional tax advantages and save on administration.