Group Life Insurance pays out on the death of one of your employees, providing a benefit to their loved ones.
You’re correct in that you’ll need a Group Life trust before the policy can go live and cover your staff. There are two types of trust you can use for this: one you, the employer, establishes, or one pre-established by the insurer, known as a ‘master trust‘.
While this option is the most tailored option, it’s also a lot of additional work and responsibility.
Alternatively, most insurers already have ‘master trusts’ you can use. These are already set up so you don’t need to implement your own trust.
Before opting for a master trust, we recommend you seek the appropriate legal advice. This is to ensure it’s right for your company given it’s not as tailored to your needs as a trust you establish yourself.