Group Life

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Please note: The following information relates to policies quoted before 28 September 2015.

As an existing customer with Group Life cover in place, we offer practical as well as financial support to your employees' loved ones, and help employees that have suffered bereavement themselves.

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

How does this policy work?

You can rely on us for support if you need to make a claim on your policy

  • 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 your employees’ families cope with a difficult period of transition.
  • 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 your employee’s dependants, pension payments have tax deducted as earned income, in accordance with HM Revenue & Customs requirements. This is our current understanding of tax rules.
  • Group Life cover premiums are usually treated as an allowable business expense for tax purposes.
  • A simple online claims form – to fill in at a time convenient to you.

Tax rules can change in the future.

Making a claim

It's the call we hope that your employees’ families never have to make, but if there is a need to make a claim on your Group Life policy, we'll do everything we can to help.

There are now just six simple steps to follow should you need to make a claim:

  1. Personal details. Complete your policy details, including the scheme name and number.
  2. Verification of death. We'll also ask for your employees’ personal details and the date, location and cause of death. We'll then use this information to check the government's Death Register, which will provide us with verification of death, needed to process the claim.
  3. Membership. We ask for the membership details, including length of time your employee was employed at your company and their salary.
  4. Beneficiaries. You will also need to list the dependant's details, the amount of pension your employee accrued and who this is to be paid to and we will also ask for payment details of the named beneficiary on the policy.
  5. Summary. Once all of the information is submitted, we will provide a summary for you to check and ensure all of the details entered are correct. You will then have the option go to back and change any details entered before submitting the claim.
  6. Confirmation. Once the claim has been submitted we will supply you with a Client Reference Number, and email you a summary of the claim. Should you have any questions or queries, contact our Claims team on 01603 680715 quoting your Client Reference Number.

As soon as we receive notification of a claim we'll work with you to support your employees' families and colleagues. Every one of our claims team is trained to handle details sensitively and if you have any questions relating to a claim, please don't hesitate to talk to us on 01603 680715.

Our confidential bereavement helpline also provides valuable advice on practical as well as emotional matters 24 hours a day.

We do not pay any claims or requests for additional amounts of benefit, which are submitted more than two years after an employees’ death. To enable payment to be made without a signature on the claim form, we will ask the Trustee(s) of the policy to complete a one off account registration form.

In certain situations the original certificate may still be required. For example, in the event of a death abroad, or a claimant submitting a claim early, prior to the register being updated. Also if an interim death certificate had been issued we will need the original.

Frequently asked questions

Are my employees based overseas covered?

In most cases we will cover employees who are based overseas, as long as they have a contract of employment with a UK company covered by this policy.

What benefits are available for a registered Group Life scheme?

Our Group Life product offers a lump sum on death in service, which can be a multiple of salary or a fixed sum. Additionally there can be a dependant's pension on death in service or even a child's pension. Quotes can be provided for different scenarios upon request.

What about a non-registered excepted scheme?

Excepted Group Life schemes are currently outside the registered pension scheme tax rules, and allow payments to be made in excess of the Lifetime Allowance. We can offer these whereby only lump sums on death, sharing the same calculation method, may be provided. These lump sums do not count towards the Lifetime Allowance. Excepted schemes can run alongside a registered scheme (sharing the same unit rate and free cover limit) or they can be standalone. They can also cater for high earners whose benefits might exceed the Lifetime Allowance, where any benefits above this limit would otherwise be taxed. This is our current understanding of tax rules; they may change in the future.

Can cover carry on whilst an employee is absent from work?

If one of your employees is off work due to illness or injury, cover can continue to the policy's cease age as long as premiums continue and a contract of employment is maintained. If absence is for any other reason, cover may continue up to a maximum of 36 months.

When will an employee's cover stop?

Cover normally stops if employees leave the company, leave the scheme, retire or die. Your company can cancel the policy at any time and we may cancel our cover if premiums fall into arrears.

What happens when a scheme member dies?

We may need to see the original death certificate, marriage or civil partner certificate and the employee's birth certificate. A claim form will then need to be completed and signed by either the scheme trustees or authorised signatories. Alternatively, you can elect to use our online claim service that can often mean no original certificates are required.

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