Death in Service
If an employee should die whilst employed by a company, the opportunity of providing the dependants of a deceased employee with a lump sum will help to soften the blow.
Death in Service usually provides a lump sum benefit of between one and four times basic salary for the beneficiary of a deceased employee. The cost of such cover is usually less than 0.1% of payroll and is an allowable business expense for the Company, and is not treated as a benefit in kind in the hands of the employee.
Each employee can nominate one or more beneficiaries under an “Expression of Wish” form.