Typically, group life insurance cover will pay out in the event of the death in service of a Company's members of staff; company life assurance schemes are one way in which an employer can add value to the overall employee benefits package provided to the business's staff.
Providing group life insurance cover to employees is relatively advantageous from an HMRC Corporation Tax point of view as the group insurance premiums are allowable as a trading expense and therefore can be appropriately offset against the company's Corporation Tax relief.
Furthermore for the employees, there is no benefit-in-kind tax penalty for the premiums payable under such a company life insurance plan.