When life is going well, it’s easy not to think about more difficult times. Group life insurance.
Group life insurance (also known as Death in Service) is one of the simplest but most highly-valued employee benefits that a company can offer its staff.
If an employee were to die unexpectedly, the life cover you put in place for them would help ensure their family could cope financially - relieving money worries at a very difficult time.
Life cover has always been an expected and valued employee benefit as well as inexpensive to provide. It can assist in attracting and retaining talent within your business, while at the same time demonstrating your duty of care as an employer.
Benefits are normally based on the employee's earnings (up to 12 x annual salary) and can be tailored to meet the employer's specific needs and those of their staff.
We offer Group Life Insurance products to suit all types of employer:
Registered Group Life
Our Registered Group Life product is written under a trust and provides a tax-free lump sum up to the Lifetime Allowance (LTA), within HM Revenue and Customs (HMRC) regulations for a registered occupational pension scheme.
People insured under the policy can have different levels of benefit, e.g. Managers could have 4 x salary; junior staff could have 2 x salary.
Registered Group Life customers also have access to our Master Trust at no additional cost.
What's life insurance for
Excepted Group Life
Excepted Group Life Insurance provides tax-free benefits and is sometimes used for high earners. It allows for lump sum benefits to be paid outside of the Lifetime Allowance (LTA).
Most Excepted arrangements are run alongside a registered group life scheme (although they don’t need to be) and benefit from the same unit rate and free cover levels.
However, a separate trust (and trustee bank account) is required.
All people insured under the policy must have the same level of benefit, e.g. 4 x salary.
Simplicity Life is a simple version of our Registered Group Life policy providing an affordable solution for employers who want to give a basic level of life cover to their employees for the first time.
One flat level of benefit of between £10k and £100k per member, irrespective of earnings
Easy quote, fast response - all we need to know is the age and gender of each person to be covered
The plan is for PAYE employees
The plan is written under our Master Trust - saving the employer the time and money of having to set up and administer a trust themselves
Easy to join - guaranteed cover for all employees who have not reached State Pension Age and are fit to work on the day membership starts
Premiums are paid by the employer
No medical underwriting forms to complete
Spouse and Partner Cover
A policy is taken out by the employer to provide a lump sum benefit to an employee should their spouse or partner die while insured.
A Spouse’s and Partner’s Group Life product is only available when written in association with a Registered Group Life policy which is insured with Unum for the same employees.
Group Life customers automatically have access to a range of support services at no additional cost, these include:
The Unum Master Trust (for Registered Group Life customers only)
Any company wishing to offer its employees Group Life Cover should have a Discretionary Trust in place in order to pay out the lump sum death benefit, free of tax up to the Lifetime Allowance.
Life insurance cost low term
To make life simpler for you, the Unum Master Trust has been set up. All employers taking out a Unum Registered Group Life policy can use it without any additional cost to ensure they get all the tax benefits with none of the associated time-consuming and complex administration.
Unum LifeWorks™ our Employee/ Employer Assistance Programme (EAP)
For employees: LifeWorks™ offers access to a 24/7 helpline for advice on everyday issues like debt and childcare. Members' dependants (age 16 or over) also have access to bereavement services including face to face counselling.
For employers: LifeWorks™ offers help on a wide range of HR issues as well as legal assistance, including the ability to create legally binding documents – great for smaller employers with no HR function.
Unum’s Mental Health Pathway is an early intervention service that enables both employers and employees to access specialist support, quickly, when mental health concerns are first raised.