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What is Group Life?
Group Life combines everyday health and wellbeing support with the reassurance of a tax-free lump sum for loved ones if the worst happens.
Life cover provided through the workplace
Group Life assurance - often called death-in-service benefit - is a fundamental part of an employee benefits package, providing peace of mind that, should an employee die, a tax-free lump sum will be paid to their dependants.
Complementing the insured benefit, all RAM Group Life policies also include a suite of additional benefits designed to give employees practical support and the tools they may need to lead a healthier lifestyle.
The tax free lump sum benefit is usually expressed as a multiple of salary, although flat-sum benefits can also be arranged.
The employer promises the benefit to eligible employees and takes out a Group Life policy to insure that liability, via their Employee Benefits Intermediary. Benefits are normally paid through trustees or an appropriate trust structure to the member’s nominated beneficiaries.
Registered or Excepted?
Registered Group Life
A long-established way of providing death-in-service benefits through an occupational scheme framework.
Excepted Group Life
An alternative trust-based structure which can be useful where an employer wants a separate arrangement from registered pension-linked provision.
This website provides a general overview only. The precise tax and legal treatment depends on the scheme and current legislation; brokers and employers should take appropriate professional advice.