Group Life Cover

The death of a key family member can cause financial hardship for his or her dependants. Group Life Cover is a simple and inexpensive way to ensure that money is immediately available to the family if an employee dies in service. This is generally cheaper than an individual insurance policy when arranged on a group basis.


This is a standard benefit paid for by the employer, for groups of employees. The cover is based on either a multiple of salary or a fixed amount. A separate income, based on a proportion of salary or a proportion of the employee's pension under an approved company scheme, can be set up. Depending on what you choose, it can pay out:

  • a lump sum of up to 4 times the employee's salary (salary for calculation purposes is capped at £99,000) for the employee's spouse, dependants or other beneficiaries (at trustees discretion)
  • a lifetime income for the employee's spouse
  • an income for the employee's children until age 18 (or 25 if in full-time education or vocational training)
  • an income for other financial dependants, such as an elderly relative, if the employee has no spouse.

Cover is generally arranged free of underwriting incorporating pre-existing conditions.