Group Life Insurance for Small Businesses

What is small-business group life insurance?

Group life insurance (sometimes known as Death-in-Service) for small business owners is a policy which protects you, your team and their families in the event of death. In the context of an SME, many owners don’t realise that they can take out group life insurance policies through their business, which usually means that every member of your business, including all employees, will be protected.

Group life insurance protects your family, and the families of your employees in the event of death. This policy usually includes a payout to the spouse or children of the employee, is tax free and can be used to help the family manage financially.

Can I put group life insurance through my SME?

Many policies allow you to put life insurance through your business (SME), and if this is what you’re looking for, the close-knit team at Dragonfly Crowd can listen to your needs and priorities to help find the right solution for you. 

Policies like relevant life insurance can be claimed as a business expense, meaning you don’t even have to pay for it out of your personal income. 

All Group Insurance schemes (Life, Critical illness & Income Protection) can usually be claimed as a business expense, allowing you to claim corporation tax relief on the premiums paid. In most cases, this is the most cost effective and tax-efficient way to take out a life insurance policy. It also means you’ll be offering one of the most attractive perks to your team members, increasing employee satisfaction.

What is the best type of life insurance for a small business?

For a small business, group life insurance is probably the best policy. Unless you have specific needs (which we’d be happy to hear), group life insurance for small businesses keeps costs down whilst protecting your business and your employees. 

Another reason group life insurance is so beneficial for a small business is because 63% of people in Britain do not hold a life insurance policy because they think it is too expensive. As a result, offering a group insurance policy is an excellent job perk and can help attract top talent to your business. In turn, this can help with employee morale, satisfaction and potentially increase revenue. 

A Group Life Insurance plan is so beneficial for a business, because 60% of people in Britain do not hold a life insurance policy, because they think it is too expensive. As a result, offering a group insurance policy is an excellent job perk and can help attract top talent to your business. In turn, this can help with employee morale, satisfaction and potentially increase revenue.

What does small business group life insurance cover?

Small business life insurance can cover the following:

• Business owner – As an owner, you can put your life insurance policy through the business as part of group cover. This can be claimed as a business expense, meaning it is tax deductible. 
• Employees – Small business group life insurance covers your employees and their families in the worst case scenario, giving them peace of mind and increasing job satisfaction. 
• Lump sum payout – A cash payment, which is usually a multiple of the employee’s salary, is paid to the family/named beneficiaries. 
• Optional cover – Some optional additions to small business life insurance plans can include critical illness cover, which provides your employee with a lump sum payment if they are diagnosed with certain illnesses or conditions. 

How group business life insurance supports small business owners

Finding a group business life insurance plan supports small business owners by offering a tax-deductible means of getting life insurance for themselves, as well as by providing a vital employee benefit which makes your business significantly more desirable to work for.

Business owners often think they won’t be eligible to get life insurance through their business, but this is usually not the case. At Dragonfly Crowd, we scour a wide panel of insurers to find the right plan for you based on your medical and personal needs. 

Your business will also be supported as group life insurance is often the number one perk that individuals look for when searching for a job. Considering not a lot of smaller businesses offer this as a perk, this will set you ahead of the crowd and might be the deciding factor in attracting talent to your business. 

If you’re the owner of a small business and you’ve got any questions about finding a suitable group life insurance plan, we’re more than happy to help.