What Type of Life Insurance Can You Have Under a Relevant Life Policy?
Question asked by Richard Fry
I’ve recently changed jobs and my new employer has said they’ll sign me up for the company life insurance plan. I’ve had Death in Service cover in the past from a previous employer, but is Group Life Insurance the same as Death in Service cover?
Yes, Group Life Insurance is the same as Death in Service cover. They’re different names for the same product.
Whatever you call it, it offers employees Life Insurance the business pays for. Should you pass away while the company employs you, your loved ones receive a cash lump sum.
Although ‘Death in Service’ sounds like you have to be at work for the policy to pay out, this isn’t the case.
While you do have to be employed by the company paying for the plan when you pass away, your death can occur anywhere. It doesn’t matter if this is at home, at work, or even in most cases abroad depending on the location and the policy’s terms. You’ll still receive a payout.