Nick Homer, group protection manager for Zurich, said the “important” product will address a “significant gap in employee protection”.
According to Mr Homer, many people are financially vulnerable if they lose their spouse or partner. Even if the employer offers a generous life assurance benefit to provide for their family in the event of the employee’s own death, there is often no similar provision to protect them if they are the ones who are left on their own.
Zurich’s spouse/partner cover is a voluntary group life arrangement operating under a discretionary trust.
“Often the focus of people’s financial planning is around the family’s main bread-winner,” said Mr Homer. “But in today’s society there is an increasing need for additional financial support if a spouse or partner were to die, particularly when the employee has young children or financial dependants.”
| KEY FACTS |
The plan offers the flexibility for the employer to set the value and number of benefit steps, up to a maximum benefit of £250,000 The simple acceptance process is based on the completion of a short application form The cover is available for employees up to the age of 75 The spouse/partner voluntary group life arrangement is a commercial contract operating under a discretionary trust It is available to Zurich’s Group Life customers It is available to Zurich’s Group Life customers |
Adviser view
Andrew Jenkinson, director at Brighton-based Drewberry Insurance, said: “Consider the British population: a large proportion of families will have both spouses in full-time work. If one spouse passes away, one would hope they were in a group scheme with their employer. I can see that Zurich’s policy will help increase group life take-up, but I also believe that if couples have an adviser, he or she would have put in place adequate life insurance anyway.”
