Group Life Assurance, Group Income Protection and Group Private Medical Insurance

Many employers choose to provide protection benefits for their employees.

Group Life Assurance

A lump sum benefit is provided on death in service. Cover is typically at four times salary and can be provided for employees through a scheme registered with HMRC. The company receives tax relief on the premiums, employees are not taxed on the cost and (in the event of a claim) benefits can usually be paid free of inheritance tax.

Group Income Protection

This cover is taken out to enable a company to continue an employee's salary in the event of long term sickness or disability. Typically, benefit is insured at 75% of salary and benefits paid after 6 months absence. The premiums paid by the company will normally be treated as a business expense and employees are not taxed on the cost.

Group Private Medical Insurance

Companies providing private medical insurance can ensure employees receive the best possible medical treatment, meaning absence and recovery times are minimised. The cost of insurance will be treated as a business expense but employees are taxed on the premiums paid.

Importantly, all these benefits can be arranged at cost levels much lower than individual, private arrangements. Benefits can usually be provided without evidence of good health. As these benefits are commonly provided, a competitive package of group insurances may be necessary to recruit key employees and in providing continuation of cover.

Contact us if you would like quotations to cover your employees. If you have existing group schemes in place, an active broking exercise can often result in an improvement in terms and reductions in cost.