Protection For All

The Context:

A client of our Commercial department was interested in offering life insurance for its two directors. However, the client was not keen on the directors completing medical underwriting, which is a requirement of all individual applications.

Our Solution:

We knew that the company had around 18 employees, which is right around the sweet spot for our Small Schemes Arrangement (SSA). It was suggested that we provide terms for both Relevant Life and Group Life Assurance (GLA), so the client could make an informed decision on which basis to proceed.

Our SSA is specifically designed for companies with up to 50 employees and offers competitive rates and benefits normally only available to much larger schemes. This arrangement works by pooling SMEs so they effectively become part of larger entities. This enables insurers to better predict performance, which brings less volatility and more competitive rates.

Outcome:

Following our market research, our client decided that instead of offering protection to just two employees, the entire workforce should benefit from this protection. This means that employees now have the security in knowing that should they pass away, their family will receive a lump sum pay-out.

From a cost perspective, the annual premium of providing two Relevant Life plans was £600. The annual premiums for the group scheme covering 18 employees was only three times this, £1,800.

Additionally, part of our SSA means we can secure a £700,000 Non-Medical Limit (NML) from a scheme of just five lives. This bypasses the need for any medical underwriting up to this amount, which is exactly what our client had requested.

At present, Covid-19 related deaths are also covered by our SSA provider (AIG) and we have not yet seen a hardening of market rates, which provides comfort during these uncertain times. Rates under our SSA are guaranteed for three years, meaning now is the perfect time to consider this valuable benefit with the security of costs being known from the outset.

Get in Touch:

To find out how your company might benefit from a chat with one of our experts, call the Aston Lark Employee Benefits team on 0207 543 2833 or email [email protected].