Unum has developed a Group Life master trust which will enable employers who offer their employees group life cover to pay out claims free of tax .
The changes to Unum's policy came into effect on 5 July 2010. Previously, the only way for the claims to be paid tax-free would be for companies to set up their own discretionary trust, which can be expensive, requires ongoing maintenance and is often time consuming. By removing the requirement for firms to manage this process themselves, Unum believes it is helping to remove business costs.
Helene Gullen, commercial marketing manager at Unum, said: "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, particularly with small and medium enterprises. 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."




