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?
Group Life Insurance offers a company’s employees Life Insurance paid for by the business. Should you pass away while in employment with the company, your loved ones will receive a cash lump sum.
Although Death in Service cover sounds like you have to be at work for the policy to pay out, this isn’t the case. You do have to be employed by the company paying for the plan when you pass away, but your death can occur anywhere – at home, at work, or even in some cases abroad depending on the location and the policy’s terms – and you’ll still receive a payout.
The payout for Company Life Insurance or Death in Service cover will be set by your company at a multiple of your salary. Most companies choose to offer a level of cover at 3-4 times annual salary, but up to 10 times annual salary is permitted by most insurers as standard.
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