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Death in Service

Group Life Assurance will provide a lump sum payment to beneficiaries in the event of death

A short guide to our Death in Service support

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.

Life Assurance

Group Life Assurance is also widely recognised as Death in Service. It provides a lump sum payment to an employees 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

  • Group Death in Service provides a fantastic protective employee benefit to employees and their families.
  • Group Death in Service provides a lump sum benefit which is normally paid tax free
  • Group Death in Service is normally quite an inexpensive cover for companies to put in place.
  • You can select the level of cover to meet your Company’s budget.
  • Group Life Assurance is not deemed by the HMRC as a benefit in kind (taxable benefit). Therefore, Death in Service is typically at no taxable cost to the employee.
  • The cost of Group Life Assurance is normally less than if purchased individually. This is because the risk is spread over a number of individuals.
  • Most Group Life Assurance 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.

Key group Life Assurance product considerations

Death in service is one of simplest employee benefits for employees to understand.  When implementing a scheme, there will be a number of factors for your company to consider:

  • 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?

Key company considerations

At Bigmore Benefits part of our objective is to obtain as much important information from you as we can, so we can assist you to make the right decision for your company.  Here are some of the key considerations we would discuss, when helping you reach a decision:

  • What is the current and future anticipated demographic of your workforce?
  • What is your budget?
  • What are the growth plans for your business?
  • Who are your competitors?
  • What are your current levels of sickness?
  • What proportion of your employees have a partner and/or children?
  • What range of roles do your employees perform?
  • Do you want to provide the same level of cover to all employees, or provide different levels to different categories of employees?
  • Are there any timing considerations for implementing cover? For example, do you want to align your Group Death in Service policy with your company financial year?

Request a quote

We believe we provide the most comprehensive service available for Small Medium Enterprises. We will:

Have an initial discussion to find out your requirements.

Quote the market
Find the most suitable product within your budget.

Report and Recommendations
Report our findings, including a full recommendation outlining our reasons.

Full Implementation
Implement the scheme and provide comprehensive communications to your employees so they fully value the benefit.

Ongoing Support
Provide ongoing support to both you and your employees.

Bigmore Employee Benefits

Telephone: 01932 253939
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"CB Benefits support HLW with all aspects of the administration of our employee benefits package, implementing the agreed schemes efficiently and effectively and updating us on any changes as appropriate. Their team is always willing to answer any questions, from the firm perspective and from individual employees and Dave Sykes is happy to visit our offices for personal consultations with the management team and to conduct inductions with staff into the benefits and pension scheme we operate. They have a friendly and professional approach at all times and I wouldn’t hesitate to recommend them to other firms.”

Jason Turner
Principal, HLW International

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