Keep your staff protected and your
business with group life insurance cover
that meets your company needs

Group life insurance is a type of insurance policy taken out by an employer to provide cover for multiple staff members.

It is sometimes known as a death-in-service benefit, although a death-in-service benefit can be taken out for a single employee only. Group life cover is often preferred over multiple individual policies due to lower costs and ease of administration.

Employers usually take out this type of insurance to protect themselves, but also to offer a more attractive package to staff.

If an employee who is covered by a group life insurance policy was to pass away while still employed by the company, the deceased’s assigned beneficiaries would receive a tax-free lump sum payment.

The payout is usually equivalent to the employee’s annual salary multiplied by 2,3,4 or 5, depending on the details of the group life insurance policy. This amount should be significant enough to help surviving family cover their financial obligations, including any immediate one-off expenses such as funeral costs. 

Group life insurance is different to individual life insurance policies because the premiums are paid by the employer – not the individuals being insured. This also means the employer can select the level of coverage provided. Employees will remain covered by group life insurance until they retire, provided they continue to work for the company without any periods of extended absence.

Some of the considerations that employers need to keep in mind when taking out group life cover are:

• What type of group life insurance policy is required?
• How many people need cover?
• What level of coverage is needed?
• How is group life insurance implemented? (legally)
• When should group life cover be reviewed and renewed?

Businesses can benefit from enlisting the services of a financial adviser who specialises in group life cover. An insurance expert can ensure the most suitable type of group life cover policy is taken out in line with business needs and preferences. They will make sure the cover is suitable to the employees and their role, as well as identify policies that can provide your optimum level of coverage. Using an adviser also saves time, enabling businesses to keep operating without distractions.

Taylor James houses experienced advisers with a proven track record of helping small and large companies take out suitable group life insurance. To discuss your business’s insurance needs, schedule an appointment with a member of our insurance team today.