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group life insurance from Castiel Winser

Group Life Assurance (Death in Service Scheme)

Businesses today operate in a much more competitive environment and are increasingly under pressure to perform. Recruitment and retention of good staff is essential to business growth and a fundamental issue for most employers. More and more, potential employees take account of the overall benefits package on offer, including pensions, healthcare and life assurance benefits.

A comprehensive benefits package can be a useful aid to staff recruitment and retention, and in this respect, Group Life Assurance Cover (also known as death in service cover) can be a valuable and cost-effective component part of this package.

Group life assurance cover is usually designed to pay a lump sum benefit on the death of an employee of the sponsoring employer. The policy can include critical illness cover if so required. The benefit is generally worked out by salary multiples.

Benefits for Employers

  • Improved staff welfare: Demonstrates the company's concern with the wellbeing of its employees.
  • Allowable business expense: Premiums can be offset against corporation tax, with no other additional tax to pay.
  • Flexible plans: Different salary multiples can be used for the different staff categories included on the scheme.
  • Staff retention and recruitment: In an ever more competitive employment market, this is an attractive cost-effective benefit to offer employees.

Benefits for Employees

  • Peace of mind: Assurance that your financial dependants will be looked after in the event of your death.
  • Company-paid premiums: Not liable for benefit in kind taxation.
  • Tax-free benefits: The lump sum benefit is not liable to income tax; there is also no inheritance tax in Gibraltar at present.
  • Free cover limit:  The employee will be guaranteed a minimum benefit regardless of their medical history.

There are various schemes available in the Gibraltar market place as well as various options available; therefore, it is important to seek independent financial advice in this area.

Feel free to contact us. We can tailor a scheme to fit both your specific requirements and your budget.