Group life schemes provide employees with a cheap and impactful benefit. In reality, few of us will die while of working age, but for those that do, a substantial lump sum can make a significant difference and help with the myriad practical problems loved ones are likely to face at an extremely difficult time.
For the rest of us, the knowledge that this is in place can give reassurance. Further reassurance can be taken from knowing that a trustee will apply oversight in determining who the lump sum should be paid to, and that wishes will be upheld.
All that, however, depends on the group life assurance scheme trustees knowing what to do. And here, a bit of forethought can save a lot of heartache. If employees fill out ‘Expression of Wishes’ forms and, just as importantly, keep them up to date, the trustees can begin the process with a major head start.
This, pretty obviously, is in everyone’s interests: employee, family members, employer and trustees. So why doesn’t this often happen?
Well, no one likes contemplating their own mortality. As Woody Allen famously said: “I don’t want to achieve immortality through my work; I want to achieve immortality through not dying. I don’t want to live on in the hearts of my countrymen; I want to live on in my apartment.”
So, Expression of Wishes forms often go uncompleted. In at least half of the cases we see — and we are trustees of group life arrangements covering roughly a million lives — employees have given no guidance at all on what we should do with the money.
This is a great shame. Obviously, we do our very best to work out what the deceased would have wanted. But no doubt we do sometimes get this wrong, we aren’t mind readers after all.
And sometimes decisions about what should happen can be very bespoke. In one recent case when we conducted an investigation, everyone, employer and all family members, agreed that what the deceased really wanted was the lump sum to be used to provide stabling for her beloved horse. We found a way to make sure that Paddy would see out his days in comfort.
Some people have sad reasons for their specific wishes. Parents sometimes want to make sure that drug-addicted children can’t finance their habit. Sometimes people want to make sure that their children get provided for, but have misgivings about any money being given to erstwhile or estranged partners whom they do not trust. Sometimes people simply have strong preferences between different family members. As Tolstoy said, “All happy families are alike; every unhappy family is unhappy in its own way.”
For the trustees to be able to take these wishes into account, we need to know what they are. This is where employers and HR directors come in and can take simple steps that will make a big difference when it matters. By annually reminding (cajoling, even) their employees to fill out and keep updated their Expression of Wishes forms, the information will be there. Or at least it will be there more often than it is now.
This can even be automated. We offer online storage of Expression of Wishes forms, removing the administrative burden for employers and making it easy for employees to complete and update them – and for trustees to access them securely when needed
Whatever approach employers chose to take, the key is to engage with employees not just at onboarding but throughout their employment. When Expression of Wishes forms are up to date, HR teams avoid the difficult conversations, delays and disputes that can otherwise follow a death in service. And importantly, encouraging employees to complete these forms can help reinforce a culture of trust.
In the end, spending a few minutes completing an Expression of Wishes form isn’t about paperwork; it’s about peace of mind. This small act of foresight spares families uncertainty, helps trustees do the right thing, and ensures that the support promised by group life assurance delivers when it’s needed most.