11 Purdeys Way Purdeys Way, Rochford, England, SS4 1ND
11 Purdeys Way Purdeys Way, Rochford, England, SS4 1ND
Strengthen Your Company’s Benefits with Staff Life Insurance
Best Price Guarantee
Whole of Market Access
FCA Authorised Advice
Company Life Insurance for employees is a type of life cover that you can provide for your employees as part of a benefits package. In the unfortunate event that the insured employee passes away, a tax-free lump sum is paid out to the employee’s beneficiaries to cover costs such as mortgage or rent payments, childcare and outstanding debt.
Not only does Company Life Insurance for employees give your staff peace of mind knowing that their loved ones will be protected should they pass away, but the insurance can also help boost your company’s recruitment efforts by forming part of a benefits package and improving staff wellbeing.
There are various types of Company Life Insurance for employees, including Relevant Life Insurance and Group Life Insurance. To help you find the best insurance for your team, take a look at our product pages to see what’s included.
Unlike some other types of Life Insurance, the employer pays the premiums on Employee Life Insurance. Should the insured employee pass away while in service at your business, the insurance company pays a lump sum to the employee’s named beneficiaries, which is usually the spouse or children.
Employees remain covered as long as they’re employed by you and meet eligibility terms. The cover will usually end when employment ends, unless otherwise agreed. In some cases, the Employee Life Insurance policy can be transferred to the employee’s new employer, or the policy can be cancelled.
Key Person Insurance is a vital form of business protection. It ensures your company remains financially secure if…
Relevant Life Insurance is a form of tax-efficient life insurance for directors and employees…
Building a business is hard work and takes time and energy. Business owners know they can always rely…
Private health insurance in the UK provides cover for medical expenses incurred…
Employee Life Insurance provides a tax-free lump sum to an employee’s chosen beneficiaries if they pass away while still employed by your organisation. The amount paid out is dependent on how much cover you have.
In most cases, the cover is a multiple of your employees’ salaries, such as 2x or 4x their annual salary. For example, if an employee earns an annual salary of £60,000, the payout will be around £120,000.
The benefit is usually placed in a discretionary trust, so it goes directly to the nominated beneficiary (such as a spouse, partner, child) free from inheritance tax. As the employer, you won’t handle the money directly, as the insurer will manage the payout.
Company Life Insurance for employees doesn’t cover critical illness, long-term sickness, or disability, although you can organise separate policies to cover these. As a default, Business Life Insurance for employees doesn’t automatically continue after an employee’s employment ends (if they leave your company) unless you choose a continuation option, or the employee transfers the policy privately.
Most Company Life Insurance for employees doesn’t cover employees if they abuse drugs or alcohol, dangerous hobbies or sports or criminal activity. Depending on the policy, the insurance may not cover employees who take their own life.
Offering Company Life Insurance for employees brings real value to both your business and your team. Not only does it demonstrate a genuine commitment to your employees’ wellbeing, but it also reassures employees staff that their families would be financially supported if the unexpected happens.
When your employees feel valued and protected, they’re more likely to stay engaged, loyal, and committed to your organisation. Business Life Insurance for employees is also typically a tax-deductible expense for businesses and policies placed in trust are paid out tax-free to your employees’ beneficiaries.
While it’s not a mandatory benefit, Life Insurance for employees is a great option for your organisation. One of the main benefits of Company Life Insurance for employees is that it offers financial protection for your employee’s families. The tax-free lump sum can help with funeral costs, mortgage payments, or ongoing living expenses and help beneficiaries cope with the loss of the employee’s salary.
Offering Company Life Insurance for employees can help you attract top tier talent and retain current employees through your long-term care and commitment to their wellbeing.
Life Insurance for employees is also a low-cost benefit with high perceived value. Depending on the policy, it’s typically tax-deductible and can work out cheaper than many other employee perks, while still offering an attractive benefit for your employees.
The cost of Company Life Insurance for employees depends on various factors, such as the age of the employee and salary levels. Older employees generally carry a higher risk, so premiums may be slightly higher if your employee is over the age of 50 or 60. Some industries are also considered higher risk (such as construction or engineering), which can increase the premiums.
As a guideline, the policies for life insurance for employees are usually based on a multiple of salary (such as 2x or 4x annual earnings). The higher the multiple or overall salary total, the more the premium costs.
Are you ready to protect your team and strengthen your benefits package? As a broker rather than an insurance company, we can help you find the best Business Life Insurance for employees all in one place. It couldn’t be easier to get a quote from My Keyman Insurance by completing our straightforward online form.
Along with Company Life Insurance for employees, we can also match you with the best cover for other areas of your business, from Private Health Insurance and Business Loan Protection to cover for your key team members with Shareholder Protection and Director Insurance.
Quote & Apply Online in 3 Simple Steps.
Submit the details of the key member of staff
Compare the quotes online
Fill out the application and get covered today.
Jody was very helpful in explaining the options and I thoroughly recommend his company
We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the best we found too.
The standard of service was first class. They kept me up to date with progress on my Relevant Life Policy, followed up promptly following delays caused by my medical practice being slow in compiling reports, and responded instantly and clearly to any questions I had.
Jody was very helpful in explaining the options and I thoroughly recommend his company
The standard of service was first class. They kept me up to date with progress on my Relevant Life Policy, followed up promptly following delays caused by my medical practice being slow in compiling reports, and responded instantly and clearly to any questions I had.
We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the best we found too.
Jody was very helpful in explaining the options and I thoroughly recommend his company
Key man insurance taxation rules have changed in 2024, affecting how businesses manage this important coverage. Here’s what you need to know about the latest updates.
Key man insurance is crucial for protecting your business from the unexpected loss of key personnel. Here are 5 reasons why every company should consider this essential cover.
Wondering how much cover your business needs? Our calculator makes it easy to find the right coverage for your key employees.
Aviva Relevant Life Insurance Review Get My Instant Quotes Start saving money on life insurance today When it comes to Relevant Life Insurance…
It depends on various factors, including the size of your business, the number of employees and the level of coverage you want. For example, larger businesses typically benefit from Group Life Insurance as premiums are usually lower than individual policies.
Workers who are in full-time and part-time employment and residents of the UK are typically eligible for Company Life Insurance for employees. Most policies set an age limit (often 16 to 70 years or up to state pension age).
If an employee leaves your business, their Business Life Insurance for employee cover will usually end automatically, unless you’ve arranged specific continuation options with your provider.
Insurers deal with the payout, so you’ll need to inform the insurer as soon as possible following the employee’s death. If your policy is set up with a discretionary trust, the trustees will assess who the payout should go to. This will make sure the benefit is paid outside the estate and is free from inheritance tax.
MyKeyManInsurance.com is a trading style of My Key Finance Limited for website purposes only. My Key Finance Limited is Authorised and Regulated by the Financial Conduct Authority. Our FCA number is 628996
My Key Finance Ltd
Copyright 2025 mykeymaninsurance. All rights reserved.
