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How does this policy work?

Any death is tragic, but the loss of someone who supported their family financially is overwhelming. In a small business like yours, with 5 to 49 employees, the effects of a premature death can be devastating. With our Group Life cover in place, you’ll find that we can help your business as well as your employees. It’s important to make sure that your Group Life cover is not only able to pay claims promptly and offer practical assistance, but is also efficiently administered right from the start. That means minimising disruption to your business, and letting your employees know how valuable this peace of mind can be…

You’ll choose options that suit your business…
  • Our flexible options can help you meet your needs and budget. It’s also useful to know that, although tax laws may change in the future, Group Life cover premiums are usually treated as an allowable business expense for tax purposes.
  • You can decide the level of benefits to be provided. These levels can vary across your business so, for example, you could set a higher level of cover for Directors or senior staff. The amount of cover can be based on a lump sum or a fixed multiple of the employee’s salary.
  • You can choose whether to include a dependant’s or children’s option. If you include this option then the premiums will be higher, but the deceased’s dependant and/or children can receive a pension based on the employee’s own pension or their salary.
  • We’ll work with you to find out which level of underwriting your business needs, then carry it out as efficiently as possible. Above our free cover limit up to a maximum of £120,000, we can make sure that medical underwriting takes place just once – avoiding any ongoing intrusion or administration for you.
… and you can all 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 form part of the deceased’s estate, so they are normally free of inheritance tax. This means that they can paid immediately, so funds could be available to help families cope with a difficult period of transition.
  • Under current legislation, lump sums are usually tax-free. Beneficiaries may be liable to a Lifetime Allowance Charge if the payment, when aggregated with the value of benefits the member has taken from other Registered Schemes, exceeds the member’s Lifetime Allowance. If you’d like information about Lifetime Allowances, please contact your financial adviser or speak to us to find out more.
  • We’ll provide expert guidance and support through our bereavement helpline – for as long as necessary. That could be immediately following bereavement or many months or even years afterwards. We can help your employees and their families cope with loss, and provide the support they need to get through the difficulties they may face as a result. Depending on individual circumstances we can also arrange referrals to specialist organisations for further support.
  • Any pension benefit can normally paid direct to the member’s dependants. Pension payments have tax deducted as earned income, in accordance with HM Revenue & Customs requirements.

Tax rules can change in the future.

If there’s anything else you’d like to know about how this policy works, or if there’s anything that you’d like us to explain in more detail, don’t hesitate to contact us.

WC00392 06072011

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0845 300 4452

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