Support families: Provides vital financial security for an employee's dependants.

Tax efficient: Premiums are normally an allowable business expense and not a P11D benefit for employees.

Highly valued: A cornerstone benefit that employees and candidates expect from quality employers.

Affordable: Group rates make meaningful life cover cost-effective per head.

Group life insurance (commonly known as death in service) is one of the most widely offered employee benefits in the UK. If an employee dies while in your employment, the policy pays a tax-free lump sum to their nominated beneficiaries. Cover is typically expressed as a multiple of salary (commonly two to four times annual earnings) and is set by the employer for all employees or different categories of staff.

The policy is owned by the employer and written under a discretionary trust, which means the benefit falls outside the employee's estate. This keeps the payout free from inheritance tax and ensures it can reach the family quickly without going through probate: a crucial advantage at an already difficult time.

One of the most attractive features of group life insurance is how straightforward it is to arrange. Employees typically join the scheme automatically up to a free cover limit, with no requirement for medical underwriting. This means cover can be extended to the entire workforce quickly and without the complications that come with individual policies.

For larger payouts above the free cover limit (often applicable to senior staff) some evidence of good health may be required, but this is handled smoothly by the insurer with minimal disruption to the employee.

Surveys consistently show that life insurance is one of the most valued employee benefits, particularly among those with dependants. Offering death in service cover signals genuine care for your people and their families: and is increasingly expected by candidates evaluating offers from quality employers. As independent advisers, Baker Hudson Health will compare group life schemes from across the market to find the right structure and premium for your business.

Employers rarely see the full impact of the benefits they provide. Group life insurance is most often appreciated in the worst circumstances: but the knowledge that it is in place provides quiet reassurance to employees at every stage of their working life.

Group life cover is almost always written in a discretionary trust, meaning the payout does not form part of the employee's estate. This avoids inheritance tax and probate delays, and means the benefit can typically be paid within weeks to the nominated beneficiaries. Employees should be encouraged to complete an expression of wishes form: Baker Hudson Health advises on this process as part of scheme setup.