A Group Life Assurance scheme enables employers to provide a tax-free lump sum benefit to an employee’s family or chosen beneficiary, if they were to die in service. Death needn’t take place during work or working hours, but the employee is required to be on the payroll of the company.
This is popularly used by employers as part of an employee benefits scheme to help attract prospective staff. An employer can choose whether to select certain individuals to be covered, a team or the entire company, should they so wish. Typically, a level of benefit will be a multiple of that employees’ salary, but specific amounts can easily be accommodated.