GROUP LIFE ASSURANCE

Transcription

1 GROUP LIFE ASSURANCE Protection when the worst happens

2 WHAT IS GROUP LIFE ASSURANCE? Group Life Assurance pays out a cash lump-sum upon death; this can provide much needed financial support at a difficult time for an employee s family and dependants. EMPLOYER BENEFITS HAVING AN EMPLOYEE BENEFITS PACKAGE IS AN EXCELLENT WAY TO STAND OUT IN A CROWD. It s a helpful tool when it comes to recruiting new employees and staff retention. Group Life Assurance cover shows you care about your employees financial situation and wellbeing, which can have a positive effect on employer-employee relations. A wide range of cover options are available, so you can rest assured knowing we have practical options for different budgets. EMPLOYEE BENEFITS THE DEATH OF A LOVED ONE CAN HAVE DEVASTATING EFFECTS, BOTH EMOTIONALLY AND FINANCIALLY. Life Assurance cover can provide the financial support needed to get an employee s family through an incredibly difficult time. Emotional support for the bereaved is available 24/7. Peace of mind should the worst happen. SUPPORT SERVICES MUCH MORE THAN A FINANCIAL BENEFIT When employers choose our Group Life Assurance policy, they also get access to the following Support Services. Helping employees, their family and colleagues through the emotional and legal side of bereavement. Bereavement Counselling Bereavement Counselling offers unlimited access to a 24/7 bereavement helpline, and up to four face-to-face or structured telephone sessions with a qualified counsellor. Probate Helpline The Probate Helpline provides access to probate experts covering family disputes, validity of wills, power of attorney and obtaining probate available Monday to Friday 8am to 8pm.* * Service is unavailable over bank holidays. BusinessCare (for employers) CLASS ONLY BusinessCare gives employers the tools they need to comply with employment law, follow best HR practice and trade safely to protect their businesses. 2

3 WHAT DO OUR GROUP LIFE ASSURANCE POLICIES PROVIDE? PRODUCT SUMMARY Various cover options available as salary multiples, or a fixed amount Redundancy cover available for up to two years Free cover level up to 1.25m Flexible cease ages up to 75 There is no limit to the number of lives that can be covered A master trust is available on certain policies Further information on Group Life Assurance can be found on our website MASTER TRUST What is a master trust? Group Life Assurance schemes are set up using a trust, which must be registered with HM Revenue & Customs (HMRC) to take advantage of the beneficial tax treatment of premiums and benefits. Employers can set up their own trust but a master trust removes this need. The administration of the trust, including the payment of claims and keeping up to date with changes in legislation, is handled by the trustees of the master trust instead of the employer. This also means there is no need to apply for a Pension Scheme Tax Reference (PSTR) number. More information on our master trust can be found on our website at www. canadalife.co.uk/group/ insight-adviser-zone/mastertrust.aspx. What are PSTR numbers? Pension Scheme Tax Reference numbers (PSTR) are issued to occupational pension schemes, and stand-alone group life schemes, which qualify for beneficial tax treatment. Without a PSTR number, any benefits paid will be taxed. If you have set up your own trust, a PSTR number can be obtained by registering the scheme with the HMRC. For help with this process, the documents below are available to download, via our website. Understanding PSTR numbers Setting up a registered scheme correctly What happens if a scheme is not set up correctly? 3

4 Case Study GILLIAN S STORY A difficult time Following the death of Gillian s husband, she had been struggling to come to terms with the reality of losing a loved one for several months. Usual daily routines, such as washing, were becoming difficult both mentally and physically. Needing help Grieving and aspects of depression are a normal response to bereavement; however Gillian was unable to come to terms with her loss even after several months. She needed help and advice on how to deal with the death of her husband so decided to get in touch. Telephone counselling was her preferred method of communication. She was encouraged to offload all feelings she had, positive or negative towards her husband s death. The key was ensuring Gillian knew she was in a safe environment during her counselling sessions, as this enabled an open and honest conversation. The more she conversed with the counsellor, the better she felt. Moving forward It was explained that what Gillian was experiencing is completely normal and the grieving process can vary hugely from person to person. Supporting people when they need it most

5 JARGON BUSTER WE KNOW THAT NOT EVERYONE DEALS WITH GROUP INSURANCE ON A DAILY BASIS, SO HERE S A SHORT LIST OF THE MOST COMMON TERMS USED AND WHAT THEY MEAN. Medical Underwriting Medical underwriting is a process where we assess the health and lifestyle of a member to check if we can provide cover. A member usually completes a heath declaration form as part of the application process. Discretionary Entrant A discretionary entrant is an employee who joins outside of the policy s eligibility conditions or normal joining times. For example, an employee is over the policy s cease age but requires cover. This type of cover is always provided at Canada Life s discretion and is normally subject to further requirements, such as medical underwriting. Free Cover Level The total amount of benefit we will cover on standard terms without the need for medical underwriting. The free cover level applies to normal entrants only (i.e. those joining in line with agreed eligibility and joining conditions) and not discretionary entrants. The free cover level will be shown on your quote. Cease Age The age that cover will cease for an insured person. Benefit The amount of money a policy member is entitled to, should a valid claim arise. Trustee The Trustee(s) are appointed by the employer and can be a group of people, or a company. They are responsible for administering the policy, establishing the beneficiary in the event of a claim and making payment to the beneficiary, or beneficiaries, if a successful claim is made. FREQUENTLY ASKED QUESTIONS HERE ARE SOME OF THE MOST COMMONLY ASKED QUESTIONS WE RECEIVE REGARDING OUR GROUP LIFE ASSURANCE POLICIES. How will the benefit be paid? The benefit will usually be paid to the scheme s trustees, who will have set up a separate trustee bank account. The trustees are then responsible for the forward payment of the benefit. Is the benefit subject to tax? As the payment is made by the Trustees direct to the beneficiary(ies), this means that the lump sum is not considered part of the employee s estate and will be exempt from inheritance tax. If pension payments are made, they will be treated as earned income and are subject to income tax. 5

6 WHY CHOOSE CANADA LIFE? With over 40 years of experience in the industry, Canada Life Group Insurance is the largest provider in the UK for Group Insurance products. 1 We have been named Best Overall Provider four years in a row and awarded for Best Overall Service seven years in a row. 2 We are the market leader for Group Life Assurance 3 and ranked number one for claims handling 4. 1 Swiss Re Group Watch ORC International 3 Swiss Re Group Watch ORC International You can talk to us IF YOU RE AN EMPLOYER Please contact your financial adviser for help or support. IF YOU RE A FINANCIAL ADVISER Your account manager will be able to answer any queries you have, alternatively our customer support centre is always happy to help. CONTACT US t: e: groupcsc@canadalife.co.uk Canada Life Limited, registered in England no Registered Office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. CLFIS (UK) Limited, registered in England no is an associate company of Canada Life Limited. Registered Office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. GRP R