Group Life Insurance Quote

What is Group Life Insurance cover?

Group Life Insurance, also known as a Death in Service benefit, is a policy your company takes out to cover your employees.

If an employee dies while working for you, the insurer pays a tax-free lump sum directly to that employee's nominated beneficiary. This provides immediate financial support without the beneficiary waiting for probate or dealing with inheritance tax complications.

Because the policy is:

• Arranged as a group scheme, typically without individual medical underwriting for most employees
• Written under a master trust arrangement, ensuring beneficiaries receive payment quickly
• Structured as an allowable business expense, making premiums tax-deductible for your company

Your employees receive financial protection without:

• Individual medical checks for standard coverage levels
• Long claims processes that delay support during a difficult time
• Tax liability on the lump sum benefit their family receives

Group Life Insurance is a way to provide genuine peace of mind for your workforce while your business gets tax efficiencies.

The British Life promise for your Group Life Insurance policy

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  Whole-market Group Life cover

  We connect you with FCA-authorised advisers who secure Group Life Insurance from leading UK insurance providers. Your adviser compares policies to ensure you get the right coverage level and additional benefits for your workforce.

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  No Hidden Fees

  You'll never pay for our service. Our advisers are compensated by the insurers only when they secure suitable cover for your employees.

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  Expert guidance on complex arrangements

  Standard free cover limits aren't suitable for senior staff. We ensure you understand master trust options and excepted group life policies for high earners as well as how to structure cover that supports all employees fairly.

Key features at a glance

A well-designed Group Life Insurance policy typically offers:

• A lump-sum benefit for beneficiaries

  Most policies provide a multiple of an employee's annual salary, commonly 2x, 4x or even 10x, depending on your budget and employee demographics. This tax-free payment provides immediate financial security for bereaved families who may be facing mortgage payments, outstanding debts and everyday life expenses.

• Automatic coverage for most employees

  Employees are enrolled without having to undergo individual medical underwriting up to the free cover limit. This makes Group Life cover accessible to staff who might struggle to obtain personal life insurance due to their medical history or lifestyle factors.

• Master trust arrangements for efficient claims

  Policies written under a master trust allow the lump sum to bypass probate and inheritance tax. That means your employee's nominated beneficiary receives financial support quickly during an already difficult time.

• Optional critical illness cover add-on

  Many providers allow you to add critical illness cover to your Group Life Insurance policy. If an employee is diagnosed with a serious condition, such as cancer, or has a medical emergency, such as a heart attack, they receive a payment while still alive to support their recovery.

• Additional well-being services

  Leading policies include bereavement support, emotional support helplines for line managers and mental health support services. These dedicated support services help your team through long-term absences and provide practical guidance during bereavement.

Your adviser will tailor the coverage level, free cover limit and additional benefits to your workforce profile and budget.

3 steps to confidence in your Group Life Insurance cover

Getting the right Group Life Insurance policy is simpler than you think:

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  1. Start your quote

  Share your details with an FCA-authorised adviser who understands employee benefits and Group Life cover for UK businesses.
  

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  2. Secure your policy

  Your adviser reviews the whole insurance market, comparing Group Life Insurance providers to find cover that meets your employees’ needs and fits within your benefits budget.

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  3. Be confident in your coverage

  You can rest assured knowing your Group Life Insurance plan provides genuine financial protection for your employees’ families and has proper master trust arrangements in place.

Imagine how it would feel knowing your employees' families are genuinely protected if the worst happens.

Start Your Quote

How Group Life Insurance works

• Policy set-up

  Your company takes out a master policy that covers eligible employees. You agree to the coverage level (typically a multiple of an employee's salary) and free cover limit as well as whether to include additional benefits such as critical illness cover. Most employees are covered automatically without individual medical underwriting.

• Premiums paid as a business expense

  Your company pays the premiums, which are usually tax-deductible as an allowable business expense. There's also typically no benefit-in-kind tax for employees on standard Group Life cover, though excepted group life policies for higher earners may have different tax treatment.

• Employees nominate beneficiaries

  Each employee completes a simple nomination form stating who should receive the lump sum benefit. Because the policy is written under a master trust or the employees set up their own trust, the payment bypasses their estate and avoids inheritance tax.

• If an employee dies

  The company notifies the insurer and provides the necessary policy documents and medical information. The insurer processes the claim based on the policy terms and will typically require a death certificate and confirmation of employment status.

• Tax-free lump sum paid to beneficiaries

  On a successful claim, the insurer pays the tax-free lump sum directly to the nominated beneficiary, usually within a few weeks. Because of the trust arrangement, this money is available immediately without waiting for probate. Many policies also provide bereavement support services and emotional support for the family during this difficult time.

• Additional support for your business

  Leading providers offer dedicated support for line managers dealing with bereavement, access to well-being services for the wider team and guidance on handling the practical aspects when an employee dies.

Your adviser will explain the full details of how claims work and what support services your chosen policy includes.

Free Guide: The Business Leader’s Guide to Financial Protection

Get a clear, jargon-free overview of how to protect your income, business and family in one place. Our free guide walks you through the five essential types of cover every business leader should understand, a 5-minute risk assessment, the biggest protection mistakes to avoid, and what proper protection really looks like.

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Compare UK Group Life Insurance providers today so you can provide the financial security your employees deserve.

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Prefer to speak to someone?

Call our UK-based team on 0333 987 3960 (Mon-Fri, 9am-7pm) and we’ll connect you with an FCA-authorised adviser.