When it comes to employee benefits, a group life insurance arrangement is one of the basic building blocks. It’s where many businesses start, and it is an ideal complement to a workplace pension.
Group life insurance financially supports the loved ones of an employee if they were to pass away in service. It can help to make sure their family copes financially – relieving money worries at a very difficult time.
- It’s a relatively low-cost way to make a big difference to employee satisfaction.
- Helps to attract and retain staff.
- It’s simple to set up – for instance, in most cases employees won’t need to answer any medical questions before they are covered.
- HMRC usually views the premiums as an allowable business expense for the employer and not a benefit-in-kind for the employee.
- Any payout will normally be free of inheritance tax because the policy is written in trust.
- Bereavement counsellors are available for family members and colleagues.