What is Group Life Insurance?
Group Life Cover (*GL) is one of the most common employer sponsored benefits and often represents the only Life Assurance provision for certain individuals and their Life-Insurance-Policies families. Thus, it’s important to get it right, at the outset.
How does Group Life Assurance Work?
Group Life Assurance Cover provides a benefit on an employee’s death in service. This can be a lump sum payable to nominated beneficiaries or a taxable pension payable to the employee’s spouse, civil partner and/or other financial dependants, or both. A Group Life Insurance policy can be put in place by the trustees of a pension scheme to cover the scheme’s liabilities for death in service benefits or by an employer to cover a contractual promise outside of a pension scheme to pay a benefit on an employee’s death in service.
Within a flexible-benefits package a core benefit of (for example) 2 times salary can be put in place with options for an employee to choose a higher or lower multiple. Most Group Life Insurance policies operate within the Revenue Commissioners regulatory framework for an “approved occupational pension scheme” (which includes arrangements set up to provide benefits on death in service only). Generally, premiums paid by an employer can be offset against corporation tax and are not regarded as a benefit in kind. Lump sum death in service benefits can normally be paid tax free up to 4 times final remuneration. It is possible to provide death in service benefits in excess of the Lifetime allowance but expert advice is required to maximize tax efficiencies. Expert advice should always be taken by an insured body or organisation when establishing a group insurance scheme to ensure best practice prevails, all benefits are maximized, costs are minimized and all tax efficiencies are availed of.
Contact us for a Free Initial Discussion about your Group Life Insurance Cover. Our experienced Financial Advisor Team are available to give you expert advice on the many benefits of Group Life Insurance. Telephone 01-6601016 or email firstname.lastname@example.org.