What happens to my family if I die?
None of us want to dwell on the worst that can happen. But if we have children or others relying on us to provide for them, it is natural to be concerned. Group Life Assurance cannot replace the person they have lost, but it can offer substantial financial security.
How does Group Life Assurance work?
Group Life Assurance is an insurance product, normally paid for by the employer. When an employee dies, subject to policy conditions, the insurance company will pay the agreed benefit to the trustees and the trustees will distribute the money according to the registered wishes of the employee.
How much does Group Life Assurance pay?
Group Life Assurance provides a single payment following the death of the insured employee. The amount to be paid is determined when the policy is first set up. The benefit can be set as a lump sum, say £100,000. In many cases, the amount is based on the employee's annual earnings and is set as a multiple of that value typically in the range of 2x - 5x annual earnings. So on the death of a person on an annual salary of £30,000 with cover at 5x earnings, the beneficiaries would receive £150,000.
Who does the money go to?
When you set up a Group Life policy, you will ask each employee to complete an “Expression of wish” form. In this, the employee indicates how they would distribute the proceeds. This is used by the trustees to decide on the distribution in the event of a claim.
How much does Group Life Assurance cost?
This depends on a range of factors, including the employees' ages, where they work and the sort of work they do. Premiums are typically less than 0.3% of payroll, but we would be delighted to get accurate quotes based on your specific needs. It's a small price to pay for the security you give your employees, knowing that their dependents will be secure.
What's my next step?
If your company is fully set up on bob, we have all the data we need.The benefits team at bob will be delighted to help by getting quotes for you. There's no commitment Get started by going to the Benefits Store and selecting Income Protection.If you have questions, you can use the chat facility in bob or email firstname.lastname@example.org. If you'd like us to call back, please leave a number we can call.