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