How does group life assurance work?

I am a company director and I’m looking at benefits for some of my staff and myself.

Question asked by Neil Richardson
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Answered by Andrew Jenkinson

Group life insurance or assurance pays out a lump sum if one of your employees dies whilst in employment with the organisation.

The death does not need to occur at work and the employee is generally covered by a multiple of their income allowing the employer to offer different levels of cover to different employees.

The insurer pays out the sum assured into trust and the trustee (the business) pays it to the family, thereby avoiding inheritance tax.

group life insurance
 
employee benefits
 
company director
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
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Neil
Pensions

Victoria
Insurance
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