Group Life Assurance
Also known as ‘death in service’, this is a life assurance policy that pays a lump sum to beneficiaries following the death of an employee. The employer pays for it without any tax implications for the individual.
Cover can be a multiple of salary, or a set amount. Most policies require little or no medical underwriting, and minimal administration. Group life assurance represents an extremely cost effective and popular benefit.
Group Income Protection
This policy provides a monthly income for employees who are off work through sickness or injury. Employers can provide different groups of employees with different levels of cover and there are no tax implications for their employees.
Traditional income protection policies have increased in cost over recent years. However, with a range of benefit and cover options (e.g. deferred periods, claim payment periods etc.) a scheme can be tailored to suit the budget of any company.
Group Critical Illness
Designed to provide financial support to employees suffering from a defined injury or illness. Cover is normally a multiple of salary and this policy pays a tax-free sum, after a survival period which can be used as the employee sees fit.
Employers pay for some or all of their employees and can provide groups of employees with different levels of cover. Employer paid premiums are classed as a benefit in kind and reportable on the employee’s p11D.