Unum has enhanced its group life cover. A major change is the creation of Master Trust, which means employers who offer their employees group life cover can pay out claims free of tax. Previously, companies would have to set up their own discretionary trust – the only way for the claims to be paid tax-free – which can be expensive, requires ongoing maintenance and is usually time consuming. By removing the requirement for firms to manage this process themselves, Unum says it is helping to remove business costs. It hopes this will encourage those considering offering group life cover to do so, particularly smaller companies that want to provide financial protection benefits, such as life cover, in a cost effective way.
Helene Gullen at Unum comments, “In our experience, the need to set up a trust can act as a real barrier to firms introducing this form of financial protection for their workforce. By using the Master Trust, for which there is no additional charge, our clients can ensure that they get all of the tax benefits with none of the associated time-consuming and complex administration.”