How Does a Group Life Insurance Claim Work? A Guide for UK Employers

Group life insurance is one of the most valued employee benefits a business can offer. But when a claim actually needs to be made, many employers find themselves unsure of what to do next.

The death of an employee is distressing in any circumstances. Understanding the claims process in advance means that when the time comes, the focus can be on supporting the family rather than navigating administration.

This guide sets out the group life insurance claims process step by step.

Who manages the claim?

Group life insurance policies are written in trust. When a claim is made, it is the trustees of the scheme who manage the process and authorise the payment. For most small and medium-sized businesses, the insurer provides a master trust arrangement where professional trustees appointed by the insurer handle the administrative and legal aspects of the claim.

The employer’s role in a claim is largely to notify the insurer or broker promptly and provide the required documentation. From that point, the insurer’s claims team and the trustees manage the process.

If you arrange your group life insurance through Hooray, we will guide you through every step and liaise with the insurer on your behalf.

“One of the things we emphasise to employers when setting up a scheme is that having a group life policy does not mean the work stops there. Expressions of Wish need to be kept up to date, and whoever manages HR in the business needs to know what to do if the worst happens. We brief our clients on the process so they are not working it out at the worst possible moment.”
Charlie Cousins, Director, Hooray Health & Protection

Step 1: Notify your broker or insurer

Contact your employee benefits broker or the insurer’s claims team as soon as possible after the death. You do not need to have all the documentation ready before making initial contact. The insurer will guide you through what is required and will typically issue a claim pack with the relevant forms.

Step 2: Complete the claim notification

The employer provides basic information to formally open the claim, including:

• The employee’s full name, date of birth and start date of employment
• The date of death
• Confirmation of the employee’s salary at the time of death, supported by a recent payslip or contract
• Confirmation that the employee was actively employed at the time of death

It is worth noting that group life insurance operates on a sweep-up accounting basis, meaning salary data held by the insurer is typically updated annually rather than after every pay change. If the employee’s salary had changed significantly since the last update, the insurer may request an updated payslip or contract to confirm the correct benefit level.

Step 3: Provide the death certificate

The insurer will require an original or certified copy of the death certificate. In most cases this is obtained by the deceased’s family. Where a death is sudden or the circumstances require investigation, additional documentation such as a post-mortem report may be needed before the claim is finalised. This can extend the timeline, but the insurer’s claims team will advise on what is needed.

Step 4: Locate the Expression of Wish and check for a will

The Expression of Wish form is the document in which the employee nominated their preferred beneficiaries. It is held either by the employer, the insurer or the master trustee.

The Expression of Wish is an important guide for the trustees, but it is not legally binding on them. It is also important to be aware that where the deceased has a will, the trustees will take this into account alongside the Expression of Wish. In some circumstances the will may affect how the payment is distributed, which is why keeping both the Expression of Wish and any existing will up to date is essential. Employees should be encouraged to review both documents regularly, particularly after significant life events such as marriage, divorce or the birth of a child.

If the Expression of Wish is missing, out of date, or names beneficiaries who are no longer appropriate, the trustees will need to take additional steps to determine the correct distribution, which can delay the claim.

Step 5: Trustees assess the claim

Once the claim documentation has been submitted, the master trustees review the claim. They verify that the employee was covered under the policy at the time of death, confirm the sum assured, and consider the Expression of Wish and any available will when determining the appropriate distribution.

This step is managed by the insurer’s trust administration team. The employer is not directly involved in the assessment.

Step 6: The payment is made

Once the trustees are satisfied that the claim is valid and have determined the distribution, the payment is made directly to the nominated beneficiaries. Because the payment is made from the trust rather than from the deceased’s estate, it does not go through probate.

In straightforward cases where the documentation is complete and the Expression of Wish is current, a death in service payout can be made within a matter of weeks. Hooray has seen claims paid in as little as five working days in straightforward cases. More complex cases take longer, but the insurer will keep you and the family updated on progress.

“Speed matters enormously to a family that has just lost someone. The fact that a well-structured payout can reach beneficiaries in a matter of weeks rather than the months that probate takes is genuinely meaningful. It is one of the things that makes the trust structure so important.”
Charlie Cousins, Director, Hooray Health & Protection

Are there circumstances where a claim might be delayed or complicated?

Group life insurance claims are rarely declined. However, claims may be delayed or require additional steps in the following circumstances:

• The employee was not actively in service at the time of death, for example if they had been formally dismissed, had resigned, or were on a form of leave that had ended their employment status
• The cause of death is under investigation, requiring additional documentation before the claim is processed. Note that this is typically a cause of delay rather than a reason for a claim to be declined
• The sum assured exceeds the free cover limit and individual underwriting had not been completed for the amount above it
• The Expression of Wish is missing or significantly out of date, requiring the trustees to take additional steps to identify appropriate beneficiaries

Your broker will advise on the appropriate course of action in any of these circumstances.

What support is available for the family?

Many group life insurance policies include added-value services for beneficiaries following the death. These vary by insurer but commonly include:

• Bereavement counselling; telephone or face-to-face bereavement support for the employee’s family
• Probate helpline; practical guidance for the family on obtaining a grant of probate and managing the estate
• Legal advice line; access to legal support for questions arising from the death

These services are provided by the insurer and are worth highlighting to employees when communicating the benefit.

How can Hooray Health and Protection help?

When you arrange a group life insurance policy through Hooray, we are with you throughout, not just at setup but when a claim needs to be made. We guide you through the notification process, liaise with the insurer on your behalf, and ensure the claim is handled as quickly and smoothly as possible. We also brief all new clients on the claims process when setting up a scheme.

To speak with our team, call 01273 222805 or email hello@hoorayinsurance.co.uk. There is no charge for our service and no obligation to proceed.