Group Life Insurance
Group life insurance (ryhmähenkivakuutus) is a life insurance policy funded by the employer or trade union that covers employees as a group. It is very common in Finland and is based on agreements between labour market organizations. Group life insurance provides financial security for the family when an employee dies.
Benefit Amounts
The group life insurance benefit amount depends on the deceased's age at the time of death and the number of beneficiaries. The basic benefit for the spouse is typically 10,000–20,000 euros, with an additional payment for each child under 18. The total benefit usually ranges from 10,000 to 30,000 euros. The benefit for accidental death may be higher.
Beneficiaries and Claiming
The beneficiary designation is fixed in the policy terms: primarily the spouse and children under 18. The benefit is claimed from the insurance company with a death certificate and documentation of family relationships. The employer's HR department can help determine whether the insurance is in force and guide the application process.
Relationship to Estate Assets
The group life insurance benefit is paid directly to the beneficiary and is not part of the estate's assets. However, the benefit is reported in the estate inventory deed. The same inheritance tax reliefs apply to benefits paid to close relatives as to other life insurance benefits — 35,000 euros per beneficiary is tax-free. More information can be found in our estate inventory guide.
Frequently asked questions
To whom is the group life insurance benefit paid?
The benefit is paid primarily to the spouse and children under 18. If there is no spouse or children, the benefit is paid to other family members as specified in the policy terms. The beneficiary designation is fixed in the policy terms and generally cannot be changed.
How is a group life insurance benefit claimed?
The benefit is claimed from the insurance company. The application requires a death certificate, documentation of family members, and possibly an employment certificate. The employer or trade union can assist with the application. The benefit is usually paid within a few weeks.
Is group life insurance common in Finland?
Yes, group life insurance covers the majority of Finnish wage earners. It is based on agreements between labour market organizations and is part of most collective agreements. The insurance is valid during the employment relationship and often for a short period after its termination.
Related terms
An insurance policy that pays a benefit to the beneficiary upon the death of the insured.
A legal entity formed by the deceased's assets and liabilities at the time of death.
A statutory procedure to determine the assets and liabilities of the deceased's estate. Must be held within 3 months of death.
Read also
The estate inventory must be conducted within three months of the deceased's death. Learn about calculating the deadline, consequences, and requesting an extension.
A guide to the employer's obligations when an employee dies: final salary, holiday compensation, group life insurance, and pension matters.
A guide to handling insurance matters after a loved one's death: claiming life insurance, group life insurance, cancelling policies, and Kela benefits.