Our group life cover is a registered group life policy, which offers the most tax-efficient option for the majority of employees. If an employee dies, money is paid to their family as either an income or a lump sum.
It is available for 10 or more employees and can be used to insure death benefits offered under your occupational pension scheme. Lump sum benefits can count towards the employee’s lifetime allowance*. The dependant’s pension benefits are taxed as pension income.
* The lifetime allowance is one of the new tax controls introduced on A-day (6 April 2006) applying to all registered pension schemes. It controls the total amount of benefits an individual can receive from all registered schemes throughout their lifetime. This includes retirement benefits and lump sum death benefits but not dependants’ pensions. For 2008/09 it’s set at £1.65 million. Benefits paid that go over the lifetime allowance will be taxed. For more information, speak to your financial adviser.
