Group Life Insurance Minimum Employees: Can a Small Company Get Cover?
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The group life insurance minimum employees requirement varies by insurer, but most UK schemes need at least two to five lives. If your company is just you, an individual relevant life policy is the usual alternative.
Some insurers accept as few as two or three employees, especially through online quoting, while others start at five. This guide is for owners of very small companies, from director-only businesses up to about five people.
Key facts
- Group life insurance minimum employees requirements vary by insurer and typically range from two to five lives.
- Aviva states that its group protection can cover "as few as three employees" (checked October 2026).
- Canada Life offers group life for five or more employees, or two or more lives for online policies (checked October 2026).
- Directors usually count towards group life minimums if they are employees on the company payroll, subject to the scheme rules.
- A relevant life policy works as an individual death in service plan and can cover a single director or employee.
How many employees do you need for group life insurance?
Most insurers need at least two to five employees for a group life insurance scheme. The exact minimum depends on the insurer and how the scheme is quoted: online services for small employers often start at two or three lives, while fully underwritten schemes may need five or more. A scheme for one person is not normally possible.
An excepted group life policy, for example, must provide benefits on the death of more than one individual under UK tax law. Insurers also price group schemes on a pool of lives.
Here's what three insurers' own websites said when we checked in October 2026. Minimums change, so treat this as a snapshot rather than a guarantee of acceptance.
| Insurer | Stated minimum for group life | Notes |
|---|---|---|
| Aviva | As few as three employees | Stated for its group protection range |
| Canada Life | Five or more employees | Two lives or more for online policies |
| Unum | Three employees via its online service | UnumOnline is stated to cover 3 to 250 employees |
| Sources: Aviva group protection, Canada Life group life insurance and Unum adviser group life insurance web pages, checked 13 October 2026. No rates are shown. Insurer criteria can change at any time. | ||
Read more on our Aviva insurer page, or ask a broker to check current rules across the market.
Do directors count towards the minimum?
Directors usually count towards the group life insurance minimum employees threshold if they are employees of the company and on the payroll. That means a business with two directors and one employee could reach a three life minimum. Each insurer sets its own eligibility rules, so check how directors and part time staff are treated.
- On the payroll: directors paid a salary through PAYE are usually eligible.
- Dividend only: a director who takes no salary may not count as an eligible employee.
- Actively at work: many schemes require members to be at work when cover starts.
What if your company is too small for a group scheme?
If you are looking for death in service for a small company that is too small for a group scheme, a relevant life policy is the usual alternative. It is an individual life policy that the company owns and pays for, with the payout going to your family through a trust. In effect, it gives one director or employee their own death in service benefit, without needing a group.
Relevant life premiums are typically an allowable business expense with no benefit in kind charge, under the rules HMRC sets out in its Employment Income Manual (EIM15045). This depends on individual circumstances and current legislation, which can change.
A sole director can usually take one out if they are on the payroll, although some insurers ask for more. See how an individual death in service plan works for directors.
Group life vs relevant life for one to five people
For a company with one to five people, the choice is usually between a small group life scheme and individual relevant life policies for each person. Group life is simpler to run for a team, while relevant life gives each person their own cover and moves with them if they leave.
| Feature | Group life (death in service) | Relevant life |
|---|---|---|
| Who it covers | A group of employees under one policy | One director or employee per policy |
| Minimum numbers | Typically two to five lives, insurer dependent | One person |
| Typical cover level | Commonly two to four times salary | Often up to 15 to 25 times total remuneration, reducing with age |
| Medical underwriting | Most members covered up to a free cover limit | Individual underwriting for each person |
| Premiums for the company | Generally an allowable expense | Typically an allowable expense |
| Benefit in kind | Not normally | No benefit in kind charge |
| If the person leaves | Cover usually ends | Policy can usually move with them to a new employer |
| Admin | One renewal each year for the scheme | Separate policy for each person |
| Illustrative summary only, based on 2026/27 rules. Tax treatment depends on individual circumstances and current legislation, which can change. | ||
We look at the two side by side in more depth in death in service vs relevant life insurance, including when it makes sense to have both.
Can you move to a group scheme as you grow?
Yes, many businesses start with relevant life for the directors and add a group life scheme once they have enough staff. You don't have to cancel existing relevant life policies when you do. Some directors keep them for higher or longer cover, while new employees join the group scheme. Take advice on whether to keep, reduce or replace each policy.
- Check headcount: once you have enough eligible employees, ask a broker which insurers will quote.
- Review directors' cover: decide whether relevant life stays alongside the group scheme or is replaced.
- Set the benefit: choose a multiple of salary that works for the whole team.
- Keep it under review: schemes usually renew each year, so revisit cover as you hire.
Group and individual cover are just two of the routes to company-paid life insurance, and our hub page compares every option.
Not sure whether your company is big enough for a group scheme? Book a free call with Executive Life and we'll check the market for you.
Frequently asked questions
Can I get group life insurance for one employee?
Group life insurance for one employee is not normally available, because the group life insurance minimum employees threshold is usually two to five lives. A relevant life policy is often used instead as an individual death in service plan. Read more about relevant life for small companies.
Can a director-only company set up death in service?
A director-only company can't usually set up a group death in service scheme, but a relevant life policy can provide individual death in service benefits for a director who is an employee of the company. The company owns and pays for the policy, and the payout goes to the director's family through a trust.
Is relevant life the same as death in service?
Relevant life works in a similar way to death in service but covers one person instead of a group. That's why it's sometimes called an individual death in service plan. We compare both in death in service vs relevant life insurance.
Can I switch from relevant life to group life as my business grows?
Yes. Many businesses add a group life scheme once they have enough employees. Existing relevant life policies don't have to be cancelled, and some directors keep them for higher cover. Speak to a qualified adviser about whether to keep, reduce or replace each policy.
Do part time employees count towards the group life minimum?
Part time employees often count towards a group life minimum if they meet the scheme's eligibility rules, such as working a minimum number of hours or being on a permanent contract. Each insurer sets its own rules, so check the scheme terms or ask your broker before you apply.
Written by
Alex Ogden DipFA | Director | Executive Life
Alex Ogden DipFA holds the Level 4 Diploma for Financial Advisers (DipFA) awarded by the Walbrook Institute London, formerly known as the London Institute of Banking & Finance (LIBF). He is authorised by the FCA Ref: AJO01072.
Tax rates and thresholds are subject to change. This article will be updated following each HMRC Autumn Budget or Spring Statement where relevant thresholds change.
Executive Life is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 985058. Registered office: Unit 6, Birchy Cross Business Centre, Broad Lane, Solihull, West Midlands B94 5DN.
This article is for general information only and does not constitute financial advice. Tax treatment depends on individual circumstances and current legislation, which may change. Always speak to a qualified adviser before making financial decisions.