By Ed Barnes, Divisional Managing Director – Champion Health & Benefits

When business leaders think about employee benefits, Group Life Assurance – often still referred to as “Death in Service” cover – is sometimes overlooked. Yet, it remains one of the most cost-effective, valued, and straightforward ways to demonstrate a real commitment to the wellbeing of your people.

At Champion Health & Benefits, we specialise in helping SME and mid-corporate businesses structure employee benefit programmes that work not just on paper, but in practice. And time and again, Group Life Assurance proves itself as a core component of a thoughtful, well-rounded benefits strategy.

What is Group Life Assurance?

In simple terms, Group Life Assurance pays out a tax-free lump sum to an employee’s beneficiary if they die while employed by your business. The amount is typically calculated as a multiple of salary (e.g. 2x or 4x annual earnings), and policies are usually written into trust to ensure speedy, tax-efficient payment to beneficiaries.

It’s a benefit no one wants to think about needing – but when the worst happens, it can make a world of difference for the loved ones left behind.

Why offer it? The business case is stronger than you might think

Group Life Assurance is about much more than just insurance. It sends a clear message to your people – that you care not only about their contribution at work, but also about their family and future security.

Some of the key benefits include:

• Employee loyalty and engagement: Knowing their employer has made provisions for their family in a worst-case scenario builds trust and loyalty. It humanises your business and can enhance your culture.
• Cost-effectiveness: Group Life Assurance is typically far more affordable than many assume – particularly when compared to other forms of insurance or employee incentives.
• Tax efficiency: Premiums are usually an allowable business expense and do not constitute a P11D benefit for employees – making it a win-win for both employer and employee.
• Minimal administration and no medical underwriting (in many cases): Most schemes include a “free cover limit”, which allows employees to be covered up to a certain level without needing to complete any medical underwriting. This makes it simple to set up and run.

More than just a payout: Valuable added services

In recent years, the value of Group Life Assurance has grown beyond the core payout. Many insurers now include a suite of value-added services, often at no extra cost. These may include:

• 24/7 Digital GP access – A convenient and confidential way for employees and their families to access medical advice.
• Employee Assistance Programmes (EAPs) – Including counselling services, legal advice, and support for mental wellbeing.
• Bereavement counselling and probate support – Helping families navigate the emotional and administrative challenges that come with losing a loved one.

These services are available to employees – meaning they deliver everyday value, not just when tragedy strikes.

Setting it up: What you need to know

• Use of a Trust: Group Life Assurance policies should be written into trust (either a registered or excepted trust). This ensures the payout is tax-free and doesn’t form part of the employee’s estate – helping dependants access funds faster.
• Tailored to your business: Whether you’re a 3-person consultancy or a 500-strong regional business, cover can be designed to suit your workforce and budget.
• Scalable and future-proof: As your business grows, cover can be reviewed and adjusted – meaning it evolves with you.

The final word

In a competitive employment market, benefits that provide genuine peace of mind can help you stand out. Group Life Assurance is one of the simplest ways to add long-term value to your team, improve wellbeing, and show that your business looks after its people in a meaningful way.

At Champion Health & Benefits, we work with businesses across the UK to design employee benefit solutions that fit their needs, budgets, and values. With decades of experience in this space, we’re here to ensure your Group Life Assurance policy is not just a tick-box – but a powerful part of your employee value proposition.

Want to explore what Group Life Assurance could look like for your business?

Contact us:
Ed Barnes
Divisional Managing Director
Champion Health & Benefits Limited
📞 07468 533 432
📧 ebarnes@ChampionInsure.co.uk