Group Life

How does this policy work?

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Please note: This information relates to policies quoted after 28 September 2015.

The effect of any death is devastating to the family concerned. When you have a Group Life policy in place, we can provide financial assistance to a deceased employee’s family, lessening the burden of worry at a stressful time.

Group Life cover pays out a lump sum and/or a pension benefit to an employee’s partner and/or their dependants’ in the event of their death.

For more information on how the policy works, please refer to the Group Life technical guide (PDF 687KB).

You choose the options that suit your business

  • Our flexible options will help meet your needs and budget.
  • You decide the level of benefits provided, for example you could set a higher level of cover for Directors or senior staff, based on a fixed amount or a multiple of salary.
  • If you decide to include dependants or children’s pension to the Group Life policy, it will mean that they will receive a pension, based on a percentage of the employee’s existing pension or salary.
  • Above our free cover limit we will normally apply a once only approach to medical underwriting.

You can rely on us for support if a claim is made

  • We’ll pay the agreed sum to the scheme’s Trustees in the event of a death.
  • Lump sums do not usually form part of the deceased’s estate, so they are normally free of inheritance tax, which means that they can be paid immediately to help families cope with a difficult period of transition.
  • Under current legislation lump sums are usually tax-free, but beneficiaries may be liable for a ‘Lifetime Allowance Charge’, if the payment (when aggregated with the value of benefits that the member has taken from other Registered Pension Schemes) exceeds the member’s Lifetime Allowance - for more information, please contact us.
  • We’ll provide expert guidance and support through our bereavement helpline for as long as necessary to help your employees and their families cope with loss.
  • Pension benefit can normally be paid direct to the member’s dependants, pension payments have tax deducted as earned income, in accordance with HM Revenue & Customs requirements.
  • Group Life cover premiums are usually treated as an allowable business expense for tax purposes.

HM Revenue and Customs practice and tax rules may change in the future and depend on the Company’s and Individual‘s circumstances.

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