Group Life Assurance

Dealing with the death of an employee or colleague is difficult enough without having to worry about whether any financial assistance should be provided. And if so how – then what precedent does that set for the future?

Group life assurance provides a straight forward solution with a lump sum, usually on a tax-free basis, being provided to the employee’s family and dependents. So at least this can take away immediate money worries and provide some financial stability for the future.

Alpha Healthcare will help design the scheme best suited for your company. Benefits can be a multiple of salary or a fixed amount. Cover can be extended to provide pension for the partner or children.

Insurers offer “free cover” limits which means that only employees whose benefit exceeds the limit will need to be medically underwritten.

Premiums are usually allowable as a business expense enjoying corporation tax relief.

For the dependents benefit payments are not normally subject to inheritance tax and can be made quickly as they are not part of the employee’s estate.

Employer advantages

• Flexibility of scheme design to suit budget
• Helps demonstrate level of care
• Can improve staff recruitment and retention
• Premiums normally allowable as business expense

Employee advantages

• Peace of mind by securing financial provision for family and dependants
• May be acceptable as required life cover by mortgage providers
• Not considered as “benefit in kind” for P11D return