Death in Service

Death in Service will provide a lump sum payment to beneficiaries in the event of death

It can be an inexpensive benefit to implement, so for companies looking to start their employee benefit journey, this can be a great place to begin.

Death in Service is also widely recognised as Group Life Assurance. It provides a lump sum payment to an employee’s nominated beneficiaries, or next of kin, in the event of death. Cover will normally be a multiple of an employees salary, but may also be a fixed amount.

The Benefits for Your People

With Death in Service, the financial benefit won’t be directly felt by your employee. It will, however, have a positive impact on those they leave behind.

This can bring your employee peace of mind that their loved ones are being taken care of should the worst happen. Knowing this support is provided by their place of employment, increases the perception that their employer cares about them beyond what happens inside the office.

Death in Service is typically paid out as a tax free lump sum.

It is not deemed by HMRC as a benefit in kind (taxable benefit). Therefore, Death in Service is typically at no taxable cost to the employee.

Most schemes will have a Free Cover Level applied. This means all employees are automatically covered up to a designated salary level, without the need for further medical underwriting.

The Benefits for Your Business

Death in Service is typically one of the lowest cost, simplest benefits to implement. Depending on the demographic of employees, normally the spread of risk will mean costs can be as little as £3 – £6 per month per employee. For a company of 100 people that could mean anywhere from £3,600 – £7,200 per year for this benefit.

This is just an example of the cost of a Death in Service scheme. What you pay per employee will be impacted by the age and salary of your workforce, the level of cover you choose as well as the terms of the payout. Before we make our product recommendations there are a few things we consider both about the product itself of the needs of our partner clients:

With the Product

Do you want a set sum assured for employees (i.e. a fixed amount for all) or do you want a multiple of salary. Or a combination of both?
If the scheme is to be implemented on salary, what salary definition will you select (i.e. total earnings, or basic salary)?
What free cover limit is available to your company and how many of your employees will require further underwriting?
Will you require an Excepted scheme or a Registered scheme. Or a combination of both?
Who will be selected as trustees on the scheme?

With the Client

Your budget
Level of cover and if it varies among employees
Workforce demographic and the roles they perform
Current levels of sickness and injury
The proportion of your employees have partner and/or children/dependants
Business growth plans
Common schemes offered in your industry
Timing considerations for implementation. For example, do you want to align your Group Death in Service policy with your company’s financial year?

Our Process

Consult

We will have an initial meeting to discuss your requirements

Quote the Market

We find the most suitable product(s) within your budget

Report and Recommendations

When we report our findings, including a full recommendation outlining our rationale.

Full Implementation

We implement the scheme and provide comprehensive communications to your employees so they fully value the benefit.

Ongoing Support

We provide ongoing support to you and your employees.

Contact Us

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