Death in Service
Death in Service is a benefit offered by employers to their employees. It provides a lump sum death benefit if an employee dies. This is usually paid out to the employee’s family, providing security and financial help in their time of need.
Death in service benefits can be tailored to the needs of your business. The two standard approaches are:
- A multiple of salary, for example 4x salary
- A fixed benefit, for example a sum assured of £100,000 per staff member.
As an employee benefit, staff do not pay a ‘benefit in kind’ on this employer sponsored cover. Premiums and the cost of advice should be a tax deductible business expense for the business.
A death in service benefit is one of the most sought after benefits an employer can provide. It is relatively low cost when compared with other benefits.
Please be aware that death in service benefit is not a substitute for individual life insurance to support your family. Death in service should be in place alongside a life insurance plan to offer the best cover for your loved ones.
If you have any question surrounding death in service cover within your business, please contact us; we are happy to help. Click here.