When you think of exciting employee benefits or employee reward packages, group life assurance is most likely not at the top of the list. Whilst a company car or private medical insurance may seem more attractive, a group life assurance scheme will be more affordable, and a more valuable benefit in a time of need. Group life assurance could be the perfect finishing touch to a benefits package and there is no doubting it is a cost effective way to reward your employees.
What is group life assurance?
A group life assurance scheme is essentially life insurance taken out by an employer on their employees as a group and is also known as ‘death in service’ life assurance. It provides life assurance for your employees at a much lower cost than they can buy individually and there are free cover limits with no underwriting requirements. It means that should an employee pass away, their nominated beneficiaries receive a tax-free lump sum to help them cope at a time of great loss and need. The sum insured is normally based on a multiple of the employees’ salary, typically between 2 and 4 times their salary, but it could be as low as one times or as high as ten times. Policy benefits can be adapted to suit any company’s needs and budget.
How will it benefit the business?
How will it benefit my employees?
In a nutshell, group life assurance is a cheap yet perceived to be a highly valuable benefit for employees, often acting as an incentive as part of a benefits package for new staff to join your business and making existing employees think twice about leaving for fear of losing their benefits.