How Does Group Life Insurance Work?
This type of policy will, in the event of an insured employee passing away pay out a pre-determined lump sum to the deceased individual’s family. This can help the family to continue their lifestyle and standard of living.
As the policyholder, your company is responsible for payment of premiums and will determine the:
- Number of staff members to be covered
- Cover level for each employee, which is typically calculated as a multiple of their salary or a specific benefit amount
- Optional extras/add-ons to be included such as Wellbeing Support, dedicated claims team
Add-ons/optional extras may, for example, consist of dedicated information helpline to support bereaved families, members and/or other optional benefits (depending on what is offered by any given policy)
Group Life Insurance recommended by Spectrum FA are underwritten by the most trusted providers in the industry – meaning they will provide your workforce with reliable cover throughout their employment with you. Learn more.
The employer is the policyholder and pays the premium, and the employees are the beneficiaries. The death benefit is paid to the beneficiaries if an employee dies while employed.