Our services -- Corporate Arrangements -- Group Life Insurances

Offering to cover your employees against death is a key benefit and helps to attract and retain good caliber employees. Life policies can vary from provider to provider but there are three main categories that a corporate body
should consider.

Death in Service

This cover provides a lump sum benefit (or income benefit) for the employee’s family (or nominated beneficiary) in the event of his/her death. Levels of cover an employer can choose vary but often they are set at a multiple of an employee’s salary. As a trading expense it is a tax efficient way of offering benefits for reasonably low costs.

Shareholder Protection/Partnership Protection

These arrangements promote financial security, business stability and continuity in the event of the loss of a principal shareholder or business partner. This is particularly important for private limited companies or small to medium sized partnerships where only a handful of principals are shareholders/partners. In the event of a shareholder/partner’s death shares may go to the deceased family who may have little or no interest in the business and would prefer a cash sum. The business (or other shareholders/partners) are likely to wish to retain control by buying the shares but may not have the resources to do so. Shareholder /Partnership protection enables the business to set up a fair agreement between the beneficiary and the surviving shareholders that suits both parties.

Key Man Assurance

This cover is designed to insure against the death or disablement of a key member of personnel without whom the company would suffer financial loss. Often companies will insure their physical assets against loss but often overlook to impact the loss of a key individual will have on the company. If this key person dies then the company receives the proceeds as the beneficiary of the insurance policy.