A lack of knowledge is preventing employers from understanding and explaining the benefits of their group life assurance (GLA) policies, Katharine Moxham has claimed.
The spokeswoman for industry body Group Risk Development (Grid) said too many employees did not understand the benefits of the group life assurance (GLA) cover on offer through the workplace, largely because the bosses themselves lack knowledge about the policies.
She highlighted research carried out among 500 human resources decision makers in 500 UK businesses, which found 55 per cent of employers did not accurately understand the circumstances in which a GLA policy would pay out.
Worryingly, this rose to nearly 74 per cent for large organisations with more than 250 staff members.
Only 45 per cent of employers correctly understood that a GLA would pay out a benefit on an employee’s death for any reason, at any time while they are in employment with the sponsoring employer – whether or not this is while undertaking activities for the employer.