Group Life Insurance provides employee’s family with either a tax free lump sum, or dependant’s pension, or both, in the event of the employee’s death.
In an increasingly competitive business world, it can be a valuable addition to an employee benefits package, which is useful in attracting and retaining loyal employees.
Employers can tailor the benefits to suit their company and their budget.
To obtain favourable tax treatment, Group Life arrangements should be set up under Trust and approved by the Inland Revenue.
Employers can provide the employee’s spouse or dependant with a pension of up to 2/3 of the member’s maximum pension, as well as a lump sum benefit if required.
Insurers design policies that are simple to manage and administer.
Benefits for your company:
- Competitive premium rates
- Premiums are usually allowable as a business expense and enjoy corporate tax relief and so reducing the real cost.
- A wide variety of options available means that the right plan can easily be constructed.
- Generous Free Cover Limits- reducing the need for lengthy medical evidence.
- Implementation of the plan enhances employee relations.
- Easy administration and flexible underwriting.
- Advice available on absence management and employee rehabilitation.
Benefits for your Employees:
- Provides peace of mind and reassurance.
- Premiums paid on an employee’s behalf are are not treated as a benefit in kind.
- Any lump sum payable to dependants is not subject to inheritance tax.