Group Life Cover

Attract & Reward Staff with this Valuable, Cost-Effective Employee Benefit When you get Group Life Cover you can...

Your Questions Answered

Confused about cover? Discover the answers to some commonly asked questions

  • What is Group Life Insurance cover?

    What is Group Life Insurance cover?

    Group Life Cover is the most cost-effective way to provide peace of mind and financial security for the families of your employees.

    Very similar to ordinary term-life insurance policies, a group life policy pays a lump sum when one of your employees dies before their normal retirement age.

    The proceeds will usually be paid into a Trust in the company name, so the benefits can be passed to the family of the deceased employee free of inheritance tax.

    The policy pays out even if your employee is not actually conducting business activity at the time of death. They might, for example be at home or on holiday when they die - the plan will still pay.

    The premium for group schemes are reviewed annually and can change over time, so it's worth having an independent business protection specialist check the market every year or two.

  • Why Get Group Life Cover?

    Why Get Group Life Cover?

    Group life insurance, otherwise known as 'death-in-service' benefit, is a standard offering for thousands of companies both in the UK and overseas.

    So if you're not providing life cover as a core part of your benefits package, your business could be at a serious disadvantage when looking to attract and retain skilled staff.

    More importantly, research shows that employers who provide death-in-service benefits are considered more engaged with the well-being of their employees, and this has a significant impact on staff morale.

    The research, reported in Cover Magazine last year, showed that 59% of employees would feel more valued if their employer provided life cover, and 51% said it would actively improve their perception of the employer.

    What's more, FT Adviser reported this year that 36% of people in the UK live with mental health difficulties - conditions which lead to increased absenteeism and reduced productivity.

    But many employers don't realise that most Group schemes also include specialist support services, to help those with physical or mental health difficulties.

    It's no secret that happier staff (in other words, staff who feel valued by their employer) are more productive and make fewer mistakes, so offering a death-in-service package can make a huge difference to the bottom line for many businesses.

  • How much cover does a Group Life Plan provide?

    How much cover does a Group Life Plan provide?

    Group death-in-service insurance policies can be extremely flexible, providing different levels of cover to different individuals in the business.

    As a rule, cover is provided as a multiple of the employee's salary before tax. The insurer you choose and the level of cover you want to offer typically provides options between 2x and 12x annual pre-tax salary.

    In some circumstances, it may be more appropriate to consider individual Relevant Life plans as an alternative, or top-up, to a group life scheme. Relevant Life cover is a a tax-efficient individual life insurance plan which provides in excess of 20x a multiple of salary, dividends, bonuses and benefits combined. (see our Relevant Life page for more detail).

  • Which insurers are best for my company?

    Which insurers are best for my company?

    There's no 'one-size-fits-all' insurer for a group scheme because each considers risk differently. This means that your business location, industry sector, and the day-to-day activities might sway some insurers in your favour, with others shying away.

    You'll also want to know what additional benefits and support services are on offer, so you know that the premium you pay is getting the best value for your business and your employees.

    Independent, specialist business protection advice is key to getting the right group life scheme in place.

  • How does a Group Life Insurance Scheme Work?

    How does a Group Life Insurance Scheme Work?

    The policy itself is owned and paid for by the business. The lives of your employees are underwritten by the insurer, the premium you pay being an average based on the age and location of your workforce.

    Here's how the claim process works:

    • Step 1: A staff member dies, either unexpectedly or as a result of a long-term condition.
    • Step 2: The business submits the claim to the insurer, along with any supporting evidence (such as a copy of death certificate or medical report)
    • Step 3: A lump-sum, equal to the value agreed when the policy is taken out, is paid direct from the insurer to a Trust setup for the business.
    • Step 4: The money is then paid direct to the family of the deceased employees, usually free of inheritance tax.
  • What You Get with S4P

    When You Speak to Specialists 4 Protection, You Get...

    • Fast and Friendly Service - from call to cover in three simple steps.
    • CII-Qualified, FCA-Regulated Advisers - with over 20 Years' experience advising accountants, business owners, and IFAs, so you know you're in good hands.
    • Business Insurance Specialists - we only work in protection, so you get focused, expert advice every step of the way.
    • Quotes from All Major Insurers - we search the whole market to get you the most affordable plan for your needs.
    • Hassle-free Policy Set-up Service - we handle all the paperwork so you can get on with your life.
    • Always Completely Fee-Free, with No Obligation and No Pressure - get advice now, then get cover when YOU are ready.
  • 3 Steps

    From Call to Cover in 3 Simple Steps

    Life is hectic, so we've made getting cover as simple as 1-2-3

    Step 1: Talk to a protection specialist. We'll discuss your circumstances, show you the best options, then compare the market to get the most affordable quotes.

     

     

    Step 2: Choose to get protected. When you tell us you're ready to go we'll handle all the paperwork for you.

     

     

    Step 3: Wait for your policy documents. You'll get hard copies of everything by post. When you have them, you'll know your cover is in place.

     

     

     

  • Why Speak To Us

    Why Should I Get Advice?

    Business protection policies are slightly more technical than ordinary personal life cover, so as with any protection product, it’s best to get expert advice. If you want the best group life quotes, use an independent adviser who checks premiums with all the main life insurance providers. Doing so could save thousands over the life of your policy.

    Here’s what the Telegraph had to say when they checked premiums with banks, insurers, and independent advisers

    “The results show that in many cases the lenders and even the insurers themselves charge far more than intermediaries for exactly the same life and critical illness policies.”

    You can check out the Telegraph article here.

    At Specialists 4 Protection our advice won’t cost you a penny and is given with no obligation. We’ll help you understand how much cover you need, what type of policy is best, and we’ll scour all major Life Insurance providers to get you the best quotes.

    For free, no obligation advice just call 01243 219190 or give us your number and we’ll call you back.

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Latest News

Advisers say family protection is important
According to warnings from advisers, it is possible for families to be at risk if proper income protection is not provided.

8% fewer intermediaries selling life and CI cover
IFAs believe there is a growing threat of people not having life insurance and critical illness cover because fewer intermediaries are selling it.

More IFAs stop selling life insurance and critical illness cover
Nearly three quarters of IFAS believe there is a growing threat of people failing to have enough life insurance and critical illness cover because fewer intermediaries are selling it.