It's never nice to think about that might happen when you pass away. It's important to make sure you've got the right protection in place for your loved ones in your absence. In some cases, you might be eligible for a death in service benefit, which could provide valuable financial support for your family.

Some employers will offer benefits to its employees as part of a package, including a death in service benefit.

In this section, we'll look at:

• What is Group Life?
• How Group Life works
• Do you need additional cover?
• What happens if you leave the company?
• Why should companies offer death in service?

What is Group Life?

Group Life Insurance is a type of employee benefit that is provided by your employer. If it's something your employer offers, it means the business will pay out a lump sum amount of money if you were to pass away while employed by them.

It's important to note that your passing doesn't have to occur when you're physically at work, or engaged in a work activity. It simply means if you are on the company's payroll, you will have Life Insurance in place.

How does it work?

Death in service policies are taken out and paid for by your employer. It's not a legal requirement for employers to offer it, so not all businesses will provide cover.

Typically, the pay-out will be paid into Master Trust, and the Trustees of the Master Trust will distribute the money. It's important to fill out and Expression of Wish Form to guide the Trustees if you have particular requirements.

The policy is usually based on a multiple of your salary, but the amount can vary.

In some cases, death in service benefits can be linked to the company pensions scheme. You might only be eligible if you've signed up for the relevant scheme.It's important to check with your employer.

Do you need additional cover?

While death in service benefit might seem suitable at first glance, especially as you don't pay for the policy, it's important to make sure it is enough. In some cases, it might be beneficial to take out your own life insurance policy as well.

The cost of living, mortgage payments and other financial commitments, such as funeral costs or childcare, can quickly add up. A death in service benefit pay-out might not be enough to protect your family from it all.

Consider your personal circumstances and how much financial help your family might need. You could take out life insurance to make up the difference, if your death in service benefit is not enough.

It's also important to note that your death in service benefit won't directly cover your mortgage repayments. This means you can't assign the money to be used towards your mortgage, but you family can choose to do so themselves.

What happens if you leave the company?

If you change jobs and move to a new employer, you will lose the right to any existing death in service benefits. This is because you're only eligible for the benefit while you're working for that employer.

Don't assume that your new employer will offer the same scheme, as not all companies do. Check what policies are available and what you are eligible for, as it could impact whether you need to take out any additional cover for yourself.

Why should companies offer death in service?

As a business, offering certain perks to your employees can have its benefits. By offering something like death in service, you can attract new staff to the business. This is because for many, benefits and bonuses are such an important part of the job, especially with families to look after and households to run.

You can also help to retain the right staff too, as offering this kind of benefit could be a big help for many of your employees. Death in service benefit can give your staff peace of mind, knowing that their emplloyer cares about them and their family.