Have you considered group life insurance?
Offer peace of mind to your staff
Sometimes known as death in service, group life insurance can be provided by an employer as a benefit to employees that offers financial peace of mind to their loved ones in the event of death.
A group life insurance policy would be paid in the form of a lump sum to the employee’s family if they died whilst employed by the company.
Looking after families and not just employees
Group life insurance is a long-term strategy for a company to consider but it will often result in greater loyalty from employees because the benefit extends to their family.
A policy is easy to implement and complements the workplace pension in terms of financial planning. The life insurance would be organised through the company, which saves time and money for the employee and adds immense value to their employment benefits package.
Benefits to a business
Group life insurance is just that – life insurance policies for a group of people. Investing in a group policy of this nature is essentially buying insurance in bulk and is therefore much cheaper than if the employee was to organise cover on an individual basis.
The insurance is tax efficient because employer contributions are considered a business expense for corporation tax purposes and are not treated as a P11D benefit for employees.
When a group life insurance policy is paid out to an employee’s family, it is paid to a discretionary trust, which ensures there is no inheritance tax implications for employees.
Talk to Willow Financial Solutions about organising group life insurance for your staff
