An essential part of an employee benefits package
Group Life insurance enables an employer to provide a lump sum benefit in the event of an employee's death. Cover can be provided for the entire workforce or a defined category of employees. It is considered an essential employee benefit, providing valuable financial peace of mind in the event of an employee death, whilst demonstrating that an employer cares for the welfare of its workforce.
Our Group Life cover can be tailored to meet the diverse needs of employers looking to set up registered or excepted schemes, which include flexible benefit arrangements and cover for an employee's spouse or partner.
Why choose Zurich Corporate Risk?
Key features of our Group Life products
Our Group Life products are designed to provide benefits under a discretionary trust. It insures the Trustee's promise to provide lump sum benefits upon the death of a scheme member.
Registered Group Life Insurance
Registered Group Life written under a trust registered with HMRC.
Lump sum benefits paid from the policy are not subject to income tax and if set up under a discretionary trust, are not subject to inheritance tax. However, if the lump sum benefit paid to a beneficiary takes the member’s benefits from all registered schemes above the Lifetime Allowance, then a tax charge of 55% will be due on any benefits above the Lifetime Allowance.
Dependant’s death in service pensions do not count towards the deceased member’s Lifetime Allowance and will be treated as earned income in the hands of the recipient.
- Offers competitive Automatic Acceptance Limits benefit below which won't normally require underwriting.
- Forward underwriting - employees will usually only be underwritten once where schemes cover 50+ members. Where forward underwriting applies no further medical enquiries will usually be made until the member's benefit exceeds £5,000,000.
- Additional cover available for a lump sum to purchase a dependant's pension.
- Temporary absence cover, due to illness or injury, can be provided until termination age. For other absence reasons, cover is usually provided for up to 36 months, however longer periods can be agreed.
- Cover available for employees aged 16 to 74.
Excepted Group Life Insurance
Excepted group life policies written under a discretionary trust.
Lump sum benefits paid from the policy are subject to the normal inheritance tax rules applicable to discretionary trusts. This means that exit and periodic charges may apply.
A policy must meet specific conditions to be an excepted group life policy as defined in section 480(3) of the Income Tax (Trading and Other Income) Act 2005 which includes that the benefit formula must be the same for all members.
- Offers competitive Automatic Acceptance Limits benefit below which won't normally require underwriting.
- Forward underwriting - employees will usually only be underwritten once where schemes cover 50+ members. Where forward underwriting applies no further medical enquiries will usually be made until the member's benefit exceeds £5,000,000.
- Temporary absence cover, due to illness or injury, can be provided until termination age. For other absence reasons, cover is usually provided for up to 36 months, however longer periods can be agreed.
- Cover available for employees aged 16 to 74.
For detailed information, please read our guides.
Spouse and partner cover
Spouse and partner cover allows an employee to select cover which pays out a lump sum if their spouse or partner dies whilst the employee is insured by the scheme. You can find out more by reading the document below:
Flexible benefits
Our flexible benefit arrangements allow employees the flexibility to vary their level of cover to suit their circumstances. It also enables employers to control their overall benefits spend.
We'll tailor the benefits package to meet the needs of the employer and their employees.
Trusts
Our Group Life policies are designed to work in conjunction with a discretionary trust.
For more information about how they work, take a look at our trusts page.
WorldAware
We provide our customers (and their employees) access to online worldwide security and health information. This is particularly relevant for employees who travel overseas.
To get a quote, employers and trustees should contact their intermediary / Financial Adviser.
Intermediaries / Financial Advisers can call their dedicated Zurich contact on 0800 141 2002 or email us at zcrquotes@uk.zurich.com
Frequently Asked Questions
Can't find the answer you're looking for? We've put together some commonly asked questions to give you more information about our Group Life insurance.