Why should employers buy group life insurance for their employees?

We understand that you care about your employees - there’d be no business without them. We care about them too. That’s why we believe it’s important to protect them and their families.

Whether you have three employees, or 20,000, having a group life insurance plan in place can provide more than just financial support for your employees, as well as offering many benefits to you as an employer.


Bring in the top talent

It’s competitive out there. Separating yourself from the competition is important when you’re looking to recruit the top talent, and keep them. Employee benefits are a great way to do exactly that – they can provide valuable benefits for current and future employees.

By buying benefits for all your employees the cost per person is cheaper than if they were to buy individual protection insurance for themselves. This means your employees will see a bigger value – it’s win-win.

Group life insurance is considered a foundation employee benefit but is one of the most highly valued by employees. It’s the most commonly used benefit amongst employers across the UK and covers over 9.5 million people.1

More than just financial support

As an employer you want your employees to feel secure. Money worries are often a cause of stress and distraction which can impact your employees’ focus at work – research shows that staff absence, turnover and lower productivity related to financial worries costs the UK economy over £15bn a year.2

Group life insurance can give your employees the financial security they need. But it offers more than just monetary support. With AIG group life insurance all of your employees can access a 24/7 confidential bereavement helpline, bereavement support for children through charity Winston’s Wish, and a dedicated probate helpline, providing them with support and guidance to navigate the potentially tricky legal, financial and tax issues resulting from a death.

Your insured employees, and their immediate family, will also get unlimited access to Smart Health. Smart Health provides on demand access to UK registered GPs, mental health specialists, nutritionists and much more, allowing your insured employees to completely own their wellbeing.

It's the right thing to do

Working relationships are more than just professional relationships, the personal bonds and friendships between colleagues are strong. As an employer it’s important to consider how you might deal with the death of an employee and how you’d like to be able support the bereaved family.

The best things we do in life we do for others. Being able to be there for your employees and your employee’s family in their time of need is the right thing to do. With a group life insurance policy in place, you can make sure they’re looked after and supported, financially and emotionally.

There's more

Here's a few more reasons why you should consider group life insurance:

  • It may be cheaper than you think: The average cost of a £100,000 benefit is around £100 a year per employee, and the cost per employee is typically much lower than what your employees would pay if they bought life insurance themselves.
  • The perfect partner to a pension plan: Life insurance is a natural complement to pension savings. It provides pre-retirement security when your employees’ pensions may be small.
  • No medical questions: With the insurance covering all employees in the organisation, or within a clearly defined group or management grade, in most cases your employees won’t need to answer any medical questions.
  • It’s tax efficient. The premiums you pay are not treated as a P11D benefit for your employees, so there is no tax charge. The premium payment is considered a business expense for corporation tax purposes.

Additional benefits with AIG group life insurance

Explore the additional benefits available with AIG’s group life insurance.

  • Bereavement helpline: This service offers all group life clients and their employees 24/7 access to a completely confidential bereavement helpline and up to four sessions of face to face or telephone counselling. It’s designed to support employees following the loss of a loved one, whether that be through developing support strategies, clinical counselling, a referral to a therapy group or providing a dedicated listening service.

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  • Winston’s Wish: We’re proud to work with Winston’s Wish, a leading UK charity working to helping bereaved children get the specialist help they need when coping with grief.
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  • Probate helpline: Our free-to-use probate helpline can help employees and their families understand the process for obtaining probate following a bereavement. Employees have unlimited access to the telephone helpline, available Monday to Friday 9am-5pm, to provide them with support and guidance to navigate the potentially tricky legal, financial and tax issues resulting from a death.
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  • Smart Health: All insured employees can benefit from Smart Health. From on-demand consultations with UK based GPs, to expert case management service with the world’s top medical specialists, our Smart Health service is a convenient way to connect your employees to tools that help manage their health and wellbeing from anywhere in the world, 24/7.
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1 Corporate Adviser Workplace and Wellbeing Report, May 2019: corporate-adviser.com/request-form-workplace-protection-and-wellbeing-report/

2 Cover Magazine, December 2019: https://www.covermagazine.co.uk/news/4008079/staff-financial-worries-cost-uk-employers-gbp-2bn