Group Life Cover: Benefits for Employees & Employers

Why as an Employer you might consider Life Cover for your employees


In the current economic environment where employers are looking to hire and retain staff in their business, it is becoming more important that additional benefits are provided over and above basic salary.

 These additional benefits might include the following:

  • Health Insurance

  • Gym Membership 

  • Life Cover

  • Income Protection


In this blog we look at the why you as an employer might consider putting Life Cover in place for your employees and what considerations might be taken into account if you were to do so.


Advantages of Group Scheme Life Cover


Opting for a Group Scheme Life Cover presents several advantages over individual life policies. Firstly, group schemes often come with more competitive premium rates, making them more cost-effective. The bulk purchasing power of a group means insurers can spread the risk across many individuals, often resulting in lower costs for employers when compared to putting individual policies in place for staff.


Additionally, group policies typically offer a more streamlined application process, with minimal to no medical underwriting required. This can be particularly beneficial for those who might face higher premiums or potential rejection due to health concerns in individual policies.


In essence, Group Scheme Life Cover offers a blend of cost efficiency, simplicity, and collective security that individual policies might not provide.


Benefits Overview

  • As the employer you can decide the level of cover than is put in place, thereby rewarding Key Members of Staff, Management or Long Service, once a clear definition can be provided the scheme can reflect your wishes.

  • Any level of cover can be put in place for employees, typically we see cover of up to four times annual salary as this can be paid as a Tax-Free Amount, which would be subject to Revenue Guidelines.

  • If a higher level of cover is arranged, then any excess over and above the allowed Tax-Free payment can be used by the scheme trustees to provide an income to the members next of kin for the remainder of their life via an Annuity or Approved Retirement Fund (ARF).

  • The cost of providing the cover is typically borne by the Employer and if established correctly there is no Tax implications for the employees and the cost is a Tax Allowable expense for the employer.

  • Additional benefits can be included to enhance the cover for employees, these might include specific allowances for Dependents and Childrens pension payments, while these enhance the benefits for the employees family, they will also increase the potential cost.


The Importance of Life Cover: Life Cover ensures that your family’s financial needs are met in the event of your passing. Daily expenses, bills, and other financial obligations don’t cease with one’s death. Life Cover offers peace of mind, knowing that your loved ones are financially secure.


Frequently Asked Questions:

  1. When does cover commence for employees? This is determined by you the employer, typically we see cover commencing at the end of an employee’s probationary period as set out in their contract of employment.


2. When does my membership conclude?  Cover will continue until:

  • You reach the ceasing age of the scheme.

  • You leave the employment of the company.

  • In the unfortunate event of your death.

  • If your Plan is cancelled.


3. What happens if an employee takes unpaid Parental, Maternity, Carer’s, or Adoptive Leave?  Cover would continue but notice should be given to the provider at the time leave commences. 


4. Can the Plan be amended? The cost of the scheme for the employer is based on the level of cover and age profile of the staff, the rate charged by the provider for the cover is set out when the scheme is established and this would apply to the annual level of cover at the renewal date. The rate charged is reviewed every three years or if there is a significant change in the membership profile, specific details are available on request.


Making a Claim: Riordan Financial are available to assist and guide, employer members and their representatives through the claims process. In the event of a claim, please contact us directly. Once notified, we will work with you to progress any claim as smoothly as possible.


For more information on how a Life Cover scheme can enhance your employees benefits, get in touch with Riordan Financial now.