Group life assurance
Protect your employees and their families if a member of your workforce passes away during their employment.
Get a group life assurance quote
Our advisors will aim to help you find the most appropriate policy for your company and its employees. Provide your contact details and a member of our team will be in touch to answer any of your questions and compare the options available to you. This is a free service with no obligation to buy.
What is group life assurance?
Group life assurance, sometimes referred to as death in service, is an employee benefit, paid for by their employer. When an employee covered under this scheme passes away, their beneficiary will receive a payout as a cash lump sum or through a pension scheme (known as a death in service pension), depending on the type of policy. Group life assurance may payout a multiple of the employee’s salary, such as 4 times, or a fixed amount per employee. The payout is aimed to relieve the financial burden their family or dependents would experience in the event of their death.
Why should you consider a group life assurance benefit?
Group life assurance is an employee benefit that may provide financial security and peace-of-mind to them and their family if the worst happens during their employment.
Offering an employee package that includes benefits beyond a salaried income may help to attract new employees.
The cost of group life assurance may be deductible from business profits, reducing your tax bill while offering a real benefit to your workforce.
Offering group life assurance as part of an employee benefits package may assist staff retention
Offering this policy to your employees may relieve them of the financial burden of purchasing an individual policy that provides them with similar coverage.
Speak to an independent insurance advisor
Get a quoteHow does group life assurance work?
The way group life assurance works varies depending on if you’re an employee or an employer. As this is an employee benefit, businesses are responsible for implementing and funding the policy, while the employee is the person insured under the terms.
Group life assurance for businesses
You are responsible for paying the premiums, or cost, of the group life assurance policy.
Either establishing your own trust, or utilising an insurers master trust.
You are in control of the policy details, such as coverage amount, maximum employee age, how the payout is structured and more.
Successful claims are paid via the trust (either by the provider, or your own, if you choose to establish one) directly to the beneficiaries.
You may need to educate your employees on what group life assurance is so that they understand the benefit, but this is something that we can help you communicate.
This benefit only covers employees while they’re on your payroll, meaning that if they leave your business, the cover will end.
Eligible employees will automatically be covered as soon as they become eligible with no need for you to provide any information at the time. However, depending on provider you need to provide up to date employee information either once a year or quarterly.
Group life assurance for employees
You will be automatically enrolled when you join a company, or when you meet the eligibility of the scheme.
You do not have control over how the policy is structured as your employer is responsible for this.
When you join the scheme, it is recommended that you complete an expression of wish from, which outlines who your beneficiaries are, to help guide the trustees in the event of a claim.
Your beneficiaries, such as your family, will receive a payout if a successful claim is made. This may be in the form of a cash lump sum or through a pension scheme.You do not have to pay any of the costs towards the scheme as this is handled by your employer.
You do not have control over how the policy is structured as your employer is responsible for this.
Your cover will only be valid whilst you’re an employee of the business. If you leave for any reason, your cover will end.
Your beneficiaries, such as your family, will receive a payout if a successful claim is made. This may be in the form of a cash lump sum or through a pension scheme.You do not have to pay any of the costs towards the scheme as this is handled by your employer.
Group life assurance is not a replacement for life insurance. Instead, it should be viewed as a benefit of your employment, and you may want to consider purchasing a life insurance policy.
How are group life assurance claims handled?
When an employee covered by the policy passes away and a successful claim is made, the way the payout is handled depends on the structure of the policy. In any event, the beneficiary of the employee will receive the payout, paid for by the provider who offered the policy via the Trust the policy is held in. Here’s how the payouts may differ:
Group life assurance - Lump sum
Death In Service Pension - Monthly payments
How much will a group life assurance policy cost your business?
How much a group life assurance policy cost varies per business. The following factors may determine the price you pay, but for more accurate information on the price of a policy, provide some basic information and our advisors will be happy to help.
Compare group life assurance policies
To compare the group life assurance policies available on the UK market, contact one of our independent advisors who can help you with a quote. Provide some information about your business and one of our specialists will be in touch. We offer this service for free, and you aren’t obligated to purchase the policies we present.
What our advisors have to say about group life assurance
“Group life assurance is a great way for businesses to support their employees’ families financially if the worst happens, and it may be a great way to attract and retain talented workers”
Group life assurance FAQs
Is group life assurance a replacement for life insurance?
Are group life assurance benefit payouts tax free?
Who pays for group life assurance?
Does group life assurance benefit cover every employee?
How can Premier Choice Group help with group life assurance?
Why choose Premier Choice Group?
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Our advice is always unbiased and impartial
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We aim to offer a fair analysis of policies available on the market
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