Group Life Assurance and Dependants’ Pensions

Why choose Legal & General?

• You know that you are dealing with an experienced provider.
• Legal & General Assurance Society is one of the UK’s top rated companies for financial strength.
• In 2007 we wrote more new group life business than any other provider.
• We provide a telephone based Employee Assistance Programme at no extra cost, which offers free bereavement counselling should the worst happen to an employee or their family.

How it works

• We can pay a lump sum payment and/or a pension for dependants in the event of the death of an employee.
• We can provide cover for employers with a group of 50 or more employees.
• Cover can cost from as little as 0.5% of payroll. The employer pays the cost of the policy. For registered schemes this expense is normally tax deductible and can be offset against profits for tax purposes.
• The employer chooses the level of cover he needs. Normally this will be based on a multiple of salary or a fixed amount for Life Assurance Benefit and a percentage of scheme earnings or the employee’s expected pension for Dependants’ Pension.
• Cover can be varied to suit your needs. All employees should be included, or all employees within a given category or group, for example, all managers and admin staff.
• Life Assurance Benefit can be distributed under a discretionary trust and there’s normally no liability for inheritance tax. Dependants’ Pension will be taxed as earned income. If we are asked to pay Dependants' Pension benefit direct to the beneficiary, we will deduct this tax before benefit is paid.
• We’ll normally cover benefit up to a certain amount (the free limit) without the need for employees to provide any medical evidence. Employees with benefit above the free limit will normally need to fill in a Member’s Declaration form before we can consider full cover.

What next?

• Contact details
• Request a quote
• For information on making a claim for benefit go to Benefits Management.

Key documents

• Group Life Assurance and Dependants' Pensions (W8849) (pdf - 146 KB)
• Proposal for Group Death in Service Benefits (W2420) (pdf - 121 KB)
• Direct Debit Mandate (W7880) (pdf - 189 KB)
• Application for Cover - Discretionary Entrant (W1783) (pdf - 48 KB)
• Tele Interview Contact Sheet (pdf - 204 KB)