Death in Service Benefit

You can provide valuable financial protection for your Staff’s Family, recognising the difficulty that can follow for their Dependants, should they die before reaching retirement.

The cover

This is provided by way of a group insurance contract that your Company would put in place for all Staff, which automatically covers each person, without health evidence, for 4 times basic salary (can be higher if desired).
This cover level means that, for example, the Family of a member of your Staff earning an annual salary of £40,000 would receive £160,000 in the event of their death before retirement, whilst an employee of your Company.

Please note that this life insurance cover applies whilst the Staff member is an employee of your Company and not just if he / she was to die whilst carrying out your job or on Company’s premises.

The level of cover is fixed by the Company and you could be notified of any proposed change in the future.

Evidence of good health

Provided your cover amount is less than the free cover limit (often that’s everyone other than some of the very highest earners), there is no health evidence required from you whatsoever.  This gives your Staff complete peace of mind, knowing you have covered them, regardless of your state of health when joining the Company.

The cost

This cover costs Staff nothing at all.  Also, the cover is not a ‘benefit in kind’, so there will be no tax liability for your Staff on the premiums paid for by you as the Employer.

Nominating your beneficiaries

You should complete an Expression of Wishes form – which is downloadable from a website page set-up especially for your Staff to view or from your usual HR contact.

When signed and dated, the company then has a record of to whom any claim money should be paid.  In the event of there not being a form on file, the Company would make a decision based on their knowledge of your personal circumstances and your legal next of kin.

It is your Staff’s responsibility to ensure that these details are kept up to date.

Your death in service cover ceases when you leave the company.