This offers a valuable Death-In-Service benefit for employees whilst working for their employer.
The benefit pays a lump sum to the employees’ dependents, which is intended to help them through some of the difficulties that losing a breadwinner can bring.
There are economies of scale in obtaining group terms which means that an employer can offer a multiple of salary benefit for their employees at a reasonable cost to the business and as part of the employee’s overall benefits package.
It can be the best way for the member to put fairly high levels of cover in place and as the members are underwritten on a “scheme basis”, there is often no need to underwrite each one individually.
Group Life Assurance is put in place to run alongside some form of Company Pension scheme although it is costed and insured separately to allow the adviser to secure the best rates year on year.