- How much will group life insurance cost me?
This will depend on several factors such as the number of employees, the industry you work in, and the amount of cover you want your employees to have. If you'd like to get an indication of how much it might cost to provide life insurance as a benefit for your staff, you can use our quick quote service.
- How much will it cost my employees?
It won't cost your employees anything as group life insurance cover is a staff benefit, provided by you, the employer.
- How many employees will the scheme cover?
The insurers on our panel will quote for two or more employees. There is no upper limit on the number of employees you can include in the scheme.
Please note, if you have more than 250 staff, getting quotes back from insurance providers will usually take longer.
- Do I have to offer cover to all my employees?
No, you can choose which employees you would like to include in the scheme, although you may want to take the Equality Act 2010 into consideration when making the decision on who to include. This piece of employment law stops employers from discriminating against their staff on various grounds, for example age and sex.
- Can I offer different levels of cover to different groups of employees?
No, all employees will get the same level of cover you choose, for example 4x their annual salary.
- What benefits will my employees get under a scheme?
This will depend on what level of cover you choose and the insurance provider you decide to place your business with. As a minimum, a lump sum will be paid in the event of their death. There may also be additional benefits such as bereavement support and probate services.
- What are the tax implications for me as an employer?
The premiums you pay for a group life insurance policy are considered a business expense, which means you can deduct them from your profits before tax.
- What are the tax implications for my employees?
Any pay out under a group life policy is tax-free, so no inheritance tax is paid on it (subject to the lifetime allowance).
- Will my employees have to undergo any medical tests?
Most providers won't ask for your employees to undergo any medical tests, but some might.
- What happens if an employee leaves my company?
Cover usually stops when someone leaves your business.
- What happens if I dismiss an employee?
As with employees who leave voluntarily, cover will stop if you dismiss a member of your staff.
- What happens when an employee reaches retirement age?
Cover usually stops when someone retires. When you fill in the quote form, you will be asked what the retirement age for your employees is, and once they reach that age, they stop being covered under the scheme.
- What if my employee wants to take a leave of absence from work, will they still be covered?
If a staff member takes a leave of absence from your business, cover is usually suspended for the time they are absent, and reinstated when they return to work.
- What happens if someone dies and I have to make a claim?
Normally you will contact your group life insurance scheme provider and advise them of the death. You'll be asked to fill in a claim form (some providers have an online claim service) which is then sent to the trustees of the scheme to be authorised. They will then make a lump sum payment to the intended beneficiary.
- How long does the cover last?
Cover lasts as long as you have a policy in place. You can cancel the policy, and your insurance provider may cancel it if you do not pay the premiums, at which point cover will stop.
- Can I move the scheme to another provider in the future?
You can move to another group life provider, usually every two years. It's easy to do, just log back into the ProtectMyPeople website the month before your scheme's two-year anniversary, update the information you originally provided about your business and employees, and get new quotes.
- I've already got a scheme set up. Can I move it using ProtectMyPeople?
Yes, you can. You can move your scheme every two years, just enter your information into our quote form and you will receive new quotes in 10 days.
- How much will it cost me to compare quotes?
We arrange the policy with the insurer on your behalf but you do not pay us a fee for doing this. We receive commission from the insurer which is a percentage of the total annual premium depending on scheme size and complexity.
- What is the difference between a registered group life scheme and an excepted scheme?
Both schemes are written in trust. A registered scheme allows tax-free lump sum payments up to the HMRC's Lifetime Allowance (LTA) and takes into account the group life scheme and other registered pension schemes, whereas an excepted scheme allows payments to be made outside the LTA, but are subject to different tax rules.
An excepted scheme can be used by higher earners who have exceeded their LTA. They often run alongside registered schemes, but from a separate trust.
- Does ProtectMyPeople offer excepted group life insurance schemes?
No, we only offer registered group life schemes.
- Is group life assurance the same as group life insurance?
Yes. It's just down to how an insurer chooses to describe the product. 'Assurance' has a similar definition to 'insurance' for financial products, and so insurance providers may use both terms. Life assurance is a policy which provides someone with insurance for life.