Offered as part of employee benefit schemes, group life insurance is regarded as an excellent way of attracting and retaining key employees – but how exactly does it work? Here’s everything you need to know about group life protection.
What is Group Life Protection Insurance?
Taken out – and paid for – by employers on behalf of employees, group life cover is a type of life insurance policy that benefits employees and their families by paying out a lump sum in the event of a named individual’s death.
How Does Group Life Insurance Work?
Typically forming part of a comprehensive employee benefits scheme, group life policies cover employees for the duration of their employment with a company and, in the event of their death, will pay out a lump sum to the deceased person’s family.
The amount to be paid out (i.e. the cover level) is typically calculated as multiples of employees’ salaries. Many policies also offer diverse add-ons and optional extra benefits like, for instance, critical illness cover and/or dedicated helplines for bereaved families.
If critical illness protection is added, the policy will pay a lump sum to the insured employee and his/her family in the event of said employee being diagnosed with one of the conditions/illnesses specified within the policy’s terms & conditions.
What Are the Benefits of Group Life Insurance Policies?
Giving employees peace of mind that their families will receive a lump sum to help them pay off outstanding debts (loans, mortgages, etc.) and cover their usual living expenses in the event of a critical illness (if selected) or their death, group life policies also benefit employers by:
- Reducing employees’ worries – allowing them to focus better on their work and consequently improving their productivity.
- Showing them to be caring, generous employers and thereby enabling them to both attract and retain high-calibre employees.
Who is Eligible to Take Out a Group Life Insurance Policy?
Any company with employees – from two staff members, to hundreds of them – can take out a group life policy.
Determining cover levels and deciding which optional extras to add can be a complicated process. Differences between diverse insurance providers’ policies and premium rates further complicate matters, so getting specialist advice and assistance on the right type of policy and cover level to meet your employees’ needs while keeping premiums at an affordable rate is a must.
Understanding how important these matters are both to you and your employees, Spectrum FA’s dedicated advisors draw on years of experience, in-depth group life protection knowledge and access to leading insurance providers’ policies to recommend and arrange reliable, bespoke polices with:
- Cover levels tailored to perfectly meet your needs and circumstances
- Competitive premium rates
For truly bespoke solutions to fit your staff and business’ unique requirements, call 01279 315 013 to arrange for a no-obligation, free review of your company/employees’ specific circumstances today.