Death in service life insurance is a policy that covers you should the worst happen whilst at work. This policy will pay out a tax free lump sum if you die in service and the death does not have to be work related but you must be on the payroll of the company when you die.
The death in service life insurance policies are connected to a company pension scheme so you must be a member of this at the time of your death.
The amount paid out could be the equivalent of two times your annual salary or offer up to four times your annual salary subject to policy agreements. For example if you purchase a policy that will pay four times your annual salary as the death benefit, if you earn £50,000. and you die whilst directly employed by the company, your family members could receive a tax free pay out of £200,000.