It enables employers to provide a lump sum benefit and an income to an employee’s dependants in the instance that an employee should die prior to retirement.

As well as encouraging staff loyalty and demonstrating a genuine care for staff welfare, Group Life insurance goes some way to reassuring employees that their efforts in the workplace really count.

COMMUNICATE WITH YOUR STAFF

Most employers in general will agree with the above statement, put the cover in place, update their staff handbooks and send out some anonymous communication with regards to this to their staff.

The complete opposite usually happens when a benefit such as private medical insurance is provided especially when a new provider or product enhancements are made. Clients like to ensure that their employees know as much about this as possible.

Then why not tell the employees how good the Life Assurance benefit can be? This may be down to the lack of understanding that an effective Group Life Product can be as beneficial as any other healthcare insurance or that death happens to others or even that we are all living longer and there is more chance of being ill than of death.

THE LIFE ASSURANCE PRODUCT

Used effectively the group life policy can be set up to ensure more than just a death benefit.

The conventional stance has been to provide a four times death in service benefit. Where it was affordable a further spouse's or dependant's benefit was added.

With the changes since A Day and in the introduction of Age Discrimination Regulations, employers should now be looking at how they can actually enhance their benefits packages by utilising a more appropriate Group Life Assurance Package.

Although the product is currently seen as a relatively simple product, this is far from the case. The lump sum element of the product should be considered as only one component of the product. If set up correctly the product can provide

1. Income protection for spouses/dependants.
2. Can be used as a vehicle to ensure that future pension provision is protected in the event of an early death.
3. Provide protection for employees who retire early.
4. Extended cover for employees who remain in employment after the NRA (or 65 if less) who have not taken any pension benefits.
5. Cover is also available for overseas employees (provided that they meet HMRC definition of a relevant UK individual.
6. Temporary absence cover.
7. Redundancy cover.
8. Rate guarantee periods (normally 2 years).
9. Good free cover levels to ensure the minimum of underwriting is necessary.

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