Also known as death in service, group life insurance is a type of cover that provides employees with life insurance. The policy will financially support the employee’s immediate family in the event of their death, so they can continue to pay their household bills, rent, mortgage and other daily outgoings without their sole breadwinner.
A common misconception is that this death has to occur on the work premises, however this is not the case. Group life insurance can also cover employees when their death occurs outside of the office, and even sometimes aboard.
What does group life insurance include?
What group life insurance includes will depend entirely on the insurance provider and the policies they offer. Group life insurance will typically provide a lump sum of money to the deceased employee’s immediate family as a means of financial support. Some covers also include bereavement counselling to help the immediate family to cope with the death of their loved one.
How does group life insurance benefit employees?
Group life insurance benefits employees by helping to provide financial support to their loved ones in the event of their death. It can help to give people peace of mind, knowing that if they were to pass away their family would still be able to cope financially.
How does group life insurance benefit employers?
Group life insurance can benefit employers in many different ways. As it is an employee benefit it can help to make their current workforce feel appreciated and taken care of. When employees feel recognised for their hard work with such perks, they are likely to be more productive.
When to consider taking out group life insurance
Group life cover can be a good scheme when you have a lot of employees and are keen to motivate and retain staff. Some policies start from just a few pounds per month and can come with added benefits such as vouchers or discounts for groceries, holidays or the theatre.
- Business rates
- Commercial waste
- Licensing and permits
- Support for your business
- Consumer advice
- Food safety
- Health and safety at work
- Safer workplace, better business
- Business services
- Supply us with goods or services
- Find a commercial property to lease
- Find a commercial property to buy
- Find a business event
- Trading Standards advice for businesses
- How group life insurance works