Death in Service
Death in Service Insurance will pay a multiple of your employee’s annual salary (up to 5x) if they die whilst under your employment. The dependents or trustees of the deceased will receive a large tax-free sum.
What does death in service mean?
If one of your staff members die whilst they are working for you (it does not have to be at the workplace), a death in service cover will give their dependents a large tax-free sum. This income can be hugely beneficial to a grieving family and help cover daily bills such as food, rent, school fees, funeral costs and more.
With death in service benefit from YuLife, you have the choice whether your employees will be covered for a multiple of their salary (up to 5x) or a fixed amount (maximum of £500,000), as long as it does not exceed 5x salary.
Having a death in the organisation can be very costly for the company and more importantly, their loved ones. By having financial protection, it is a smart way to reduce your potential risks and show commitment to your staff.
An important employee benefit
Showing an interest in your employee’s help shows that you care for them, their wellbeing and their family.
Keeping quality staff members is very important - and offering any employee benefits such as death in service is a key way to retain staff. All new customers with YuLife, will also receive their choice of Amazon vouchers and discounts from ASOS, Urban Massage and other well-known brands.
Is death in service different to life insurance?
Yes, a death in service policy offers a tax-free pay out, but it is not linked to the individual’s mortgage repayments. Your family can use the money paid out and put it towards your mortgage, but this will only be up to 5x their annual income.
Life insurance is calculated on the individual’s potential income and to help their family with future mortgage repayments, paying up to 10x their income.
It is common that some people will use death in service and also apply for life insurance as a way to ‘top up’ and help pay off their existing mortgage. Premiums will often be lower too if you have a death in service insurance policy already in place.
Do you need death in service insurance?
Providing Death in Service benefits is a great way of showing your employees you care about their financial wellbeing. It’s your promise to them that if the worst happens you’ll provide financial support for their loved ones.
Who gets death in service payment?
Death in Service benefit will pay out the lump sum directly to your employees’ chosen beneficiaries, which is usually dependents or loved ones.
You can choose for them to get a tax-free lump sum based on a multiple of their salary e.g 4x salary, or, a fixed lump sum e.g. £50,000. The choice is yours. Either way, you’ll be making a meaningful contribution to your employees’ financial wellbeing.
Why use YuLife for death in service?
Protect your employees today and in the future with a Death in Service benefit that inspires your people to live well – and rewards them for it.
Support employees with work, relationship or financial issues via our employee assistance program and look after their health with our 24/7 virtual GP service. Both services are included with all of our policies and can be accessed through the Wellbeing Hub in the YuLife app.
YuLife gives you more for your money’s worth: each one of our policies comes free with our wellbeing app, which rewards your team for completing tasks relating to fitness, health and mindfulness - giving them YuCoin which they can redeem for vouchers as leading retailers.
To find out about death in service and how it works, get in touch with us here.
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