Many Group Life Assurance policies renew in April to align with the tax year. This makes the annual renewal an ideal time to check that employees have completed, and importantly, updated their Expression of Wish forms.
So, what is an Expression of Wish?
An Expression of Wish is a form that tells the scheme Trustees who you would like your death in service benefit to be paid to. Group Life Assurance is typically written under a pension trust, which means any payout is held within a discretionary trust.
In simple terms, this means the benefit isn’t automatically paid to your next of kin or in line with your will. Instead, the Trustees decide who should receive it.
While an Expression of Wish isn’t legally binding, it plays a key role in guiding the Trustees’ decision. They will carry out a thorough review of the circumstances when a claim arises, and your stated wishes are an important part of that process.
Why is it important?
It can feel like just another form to complete when starting a new job, but it plays a crucial role in ensuring your intentions are taken into account.
You can name multiple beneficiaries, choose how the benefit is split between them, and even nominate a charity if you wish. Without a completed form, Trustees have less guidance, which can lead to delays or uncertainty at what is already a difficult time for those involved.
Why should it be kept up to date?
Keeping your Expression of Wish form up to date is just as important as completing it in the first place.
In some cases, where an employer acts as Trustee, they may already have an understanding of an employee’s personal circumstances. However, where a scheme operates under an insurer’s master trust, Trustees will not know an individual’s situation without carrying out further investigation.
If circumstances change, for example, marriage, divorce or the birth of a child, it’s important to review and update the form, even if your intended beneficiaries remain the same.
For example, if an employee remarries but still wants their children from a previous relationship to receive the benefit, an outdated form could create complications. If the form predates the remarriage, it may increase the risk of delays or even legal challenge.
How we can help
Managing employee benefits, including Group Life Assurance, comes with ongoing responsibilities. Keeping Expression of Wish forms up to date is a small but vital part of ensuring claims are handled smoothly and in line with employees’ intentions.
At Clear Employee Benefits, we support employers by providing regular reminders, helping you stay on top of key administrative tasks, and ensuring important documents are properly maintained. This helps reduce risk, avoid unnecessary delays, and gives both you and your employees greater peace of mind.
If you’d like support reviewing your Group Life Assurance scheme or wider employee benefits package, we’d be happy to help.
