Group Life Assurance: Providing Financial Security for Families
- Excellect
- Oct 21
- 2 min read
Supporting employees - and their loved ones - when it matters most
No one likes to think about the worst happening - but having the right protection in place can make an enormous difference when it does.
Group Life Assurance (often called Death in Service) provides financial peace of mind for employees and their families. If an employee passes away while employed, it pays a lump sum - usually based on a multiple of their salary - to their chosen beneficiaries.
It’s one of the simplest, most valued employee benefits you can offer, and one that sends a powerful message: we care about our people and their families.
What Is Group Life Assurance?
Group Life Assurance is a company-paid insurance policy that covers all eligible employees under a single scheme.
If an insured employee dies while working for your business, the policy pays a tax-free lump sum to their beneficiaries. This payment can help cover living costs, mortgage repayments, or simply give loved ones financial breathing space during an incredibly difficult time.
How It Works
The Employer takes out the policy on behalf of their employees.
Cover Amount: Typically a multiple of salary (e.g. 3x or 4x annual pay).
Payment: Paid via a discretionary trust to the employee’s nominated beneficiaries.
Eligibility: Most schemes cover all permanent employees, with options for different levels of cover for senior staff.
By using a trust, the benefit is paid outside of the employee’s estate - meaning no inheritance tax or probate delays.
Why Businesses Offer Group Life Assurance
1. Shows Genuine Care and Responsibility
Providing life cover demonstrates a long-term commitment to employee wellbeing and family security.
2. Supports Recruitment and Retention
It’s a highly valued benefit that helps your business stand out to candidates and retain existing staff.
3. Tax-Efficient and Cost-Effective
Premiums are usually treated as an allowable business expense, and the cost per employee is typically very low.
4. Ease of Administration
Policies are straightforward to set up and maintain - and a good broker will handle provider communication and renewals for you.
Added Benefits
Many modern life assurance policies come with additional wellbeing support, such as:
Bereavement counselling for families
Probate and estate guidance
Access to Employee Assistance Programmes (EAPs)
Health and wellbeing tools for employees
This turns a traditional protection product into something that adds real, everyday value.
Reviewing Your Cover
If you already have a Group Life policy, it’s worth reviewing regularly.
Your headcount, salary levels, and business structure may change - and you’ll want to ensure your cover still reflects that.
A whole-of-market broker (like Excellect) can compare providers, manage renewals, and ensure your trust documentation stays up to date - all at no extra cost.
Final Thoughts
Group Life Assurance is one of the simplest yet most meaningful benefits an employer can offer. It provides families with financial stability, employees with peace of mind, and employers with a tangible way to demonstrate care and integrity.
Comments