Why Offer Group Life Insurance?

There are plenty of reasons employers add it to their benefits package

It helps attract and keep good people

Staff feel valued and supported

It’s usually far cheaper than people expect

Payments to loved ones are quick and hassle free

Cover can be set up around your team size and budget

Who Is Group Life Insurance For?

Any business that wants to look after its employees. Whether you run a small local outfit or a fast growing company, group life insurance gives everyone peace of mind without mountains of admin.

How Group Life Insurance Works

Once your scheme is set up, employees are covered as long as they’re on payroll and meet any eligibility rules you choose. If a claim happens, the insurer pays a lump sum based on the agreed multiple of salary or fixed amount. It’s straightforward, reliable and designed to run quietly in the background.

Key Benefits for Employers

• Stronger staff morale and loyalty

• A meaningful benefit at a reasonable cost

• Minimal paperwork

• Flexible levels of cover

• A benefit employees genuinely appreciate

What is group life insurance?

Group life insurance is a policy an employer takes out to provide life cover for its employees. If an employee passes away, a lump sum is paid to their nominated beneficiary.

Who is eligible for group life insurance?

Eligibility rules are usually set by the employer. Most policies cover all permanent employees, but some schemes can include part-time staff or new starters after a waiting period.

How much cover does group life insurance provide?

Cover is usually a multiple of the employee’s salary (e.g., 2–4 times annual pay) or a fixed lump sum. It can be tailored to suit the business budget and employee needs.

Is group life insurance taxable?

The lump sum paid to the employee’s family or beneficiary is generally tax-free, making it a highly valuable benefit.

Does the employee need to undergo medical checks?

Typically, group life insurance doesn’t require medical exams for standard cover, making it quick and simple to set up. Some policies may have limits where extra underwriting is needed for higher cover.

Can employees increase their cover individually?

Some plans allow employees to take out additional personal cover, but the basic group policy is managed by the employer.

What happens if an employee leaves the company?

Coverage usually ends when the employee leaves, though some schemes offer options to continue or convert cover to an individual policy

Can part-time or casual staff be included?

Yes, many group policies allow part-time, casual, or even temporary staff to be included, depending on the employer’s preferences.

How do claims work?

If an employee passes away, the employer or beneficiary notifies the insurer. The insurer then pays a lump sum based on the agreed coverage. The process is usually straightforward and fast.

Why should a business offer group life insurance?

It’s a simple way to show employees you care, improve retention and loyalty, and provide meaningful financial security for staff and their families—all while being cost-effective for the business.