Death in Service Life Cover

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.

If you were to pass away whilst at work, your employer would be responsible for making the claim. A lump sum would be paid to the trustees, they will then make the decision as to whom the money is released too, whilst taking into account your decisions and requests. The payments released are usually released to the surviving spouse, these payments are normally tax free unless you have passed your lifetime allowance.

There are many features that come with this policy, here are just some;

• Covered whilst at work
• Tax free lump sum would be paid out
• Death benefit amongst other benefit options
• Optional cover available
• Company sometimes pay for this cover

There are many benefits with Death in service life insurance, here are a few;

• The finances of you and your family are secure
• The benefit pay out would be a tax free lump sum
• You would be covered whilst at work
• Employer usually pays for this cover
• There is additional cover available
• Covered for any illnesses or conditions

All of these benefits and features of this cover are there to help the policy holder and their families should anything happen. We understand if the worst were to happen or if the policy holder were to become disabled as a result of an accident or an illness that is work related the family as well as the policy holder would need as much help going forward and that is exactly what Death in Service Life Insurance is all about.