With Life Insurance, it’s paid for personally, from your bank account. For death in service, the cover is paid for by the company.
You only receive death in service Insurance from your employer for as long as you’re working at the company – if you move jobs, your cover lapses. Individual Life Insurance is owned by you personally and remains in place for the full term unless you stop paying the premiums.
Your employer typically decides how much cover they will provide, which is usually a multiple of your salary.
Do I need Personal Life Insurance If I Get Death In Service?
Your company death in service benefit may not be sufficient to meet your needs, especially if you have a larger mortgage or other commitments you might want to have paid off on your death.
You’re free to choose how much life cover you want on an individual basis, which is why many people choose to ‘top up’ with Personal Life Insurance.
Terminal Illness Benefit
A personal policy will payout immediately should you be diagnosed with a terminal illness and be told you have less than 12 months to live. This is not included on the majority of group policies.