MetLife has launched a master trust aimed at help small and medium-sized businesses cut administration time and costs when setting up group life insurance scheme.
The MetLife master trust will be free and enable employers insuring lump sum death benefits for staff to avoid the cost and administrative time involved in setting up their own scheme or as having to appoint trustees and a scheme administrator.
Castlewood Trust Corporation will act as the master trust trustee.
The scheme is already registered with HMRC for the relevant tax relief and provides lump sum death benefits for insured employees and partners of employers participating in the scheme.
Stephanie Baillie, employee benefits director of MetLife UK, said: ‘Small and medium-sized employers have told us that setting up a registered scheme under a discretionary trust can be a barrier to putting in place tax-advantageous group life benefits for their staff.
‘Offering access to a master trust to employers reduces administration time and will ease the process for employers.
‘With SMEs tackling the onset of auto-enrolment the ability to offer Group Life will complement any pension arrangements by creating an attractive benefits package for their employees and provide additional protection for their families.’
Scott Clayton, managing director of Castlewood, said: ‘The partnership with MetLife is a key part of our expansion plans and we are confident that clients will welcome the efficient and reliable service the master trust will offer.’