Setting up a group life insurance policy

It is important to seek advice to ensure you find the most appropriate scheme for your organisation. Endsleigh’s team of specialist employee benefits advisers are fully independent and have access to a range of insurers in the UK, which means they will offer you expert advice on the best solutions available in the marketplace.

Things to consider
Every insurer on the market has their own method of underwriting their policies and this can have a significant influence over the cost of your cover. The higher the risk associated with the individuals on your policy the more you can expect to pay.   For example the insurer may wish to charge more if your employees regularly work at heights or offshore than they would if everyone was office based.

Each provider will place a varying degree of risk on your policy, so the ability to compare providers will ensure yours is the most cost effective for your requirements.  As Endsleigh is completely independent, we will research every provider of group life insurance available in the market to ensure we recommend the most suitable.

It is also important to think about the level of cover you will be providing to employees. More often than not the policy will provide cover based on salary and a multiple of that, usually between 2 and 4 times salary.

You are able to vary the level of cover across the organisation, with perhaps more senior positions receiving a higher level of cover.

There are two factors which you will have little influence over; the age of your employees and the location of your offices. As to be expected, the older we are the more life insurance will cost as the risk to the insurer has increased. With a group life insurance policy the older the average age of the employees the more expensive your premium will be.

The location of your offices can also lead to an increase in premiums if they are seen to be in a higher risk area, such as a city centre for example.

Writing your group life insurance policy into Trust
Writing your group life insurance scheme into trust means any payouts from the scheme will avoid inheritance tax. Without a trust, the payout from a life insurance policy upon death will be added to the individual’s estate which is subject to inheritance tax at 40% on amounts over £325,000.

Not only will placing the scheme into trust avoid inheritance tax, it also ensures prompt and efficient payments to the deceased employee’s family. Dealing with the deceased’s estate can take many months, leaving the beneficiaries to meet their monthly commitments alone, unable to claim the inheritance.

Writing a policy into trust means their beneficiaries will receive the payment swiftly and without being taxed. This is something we are able to arrange as part of our service to you.

See what our group life insurance offers

Group life insurance is one of the many employee benefits available for employers to offer their staff. Other benefits include pension schemes, group income protection schemes providing a replacement income if an employee is off work long term and group medical insurance plans.