Life Insurance

Death-in-Service Life Insurance: Show Your Employees You Care

Provide your employees with peace of mind

  • By Paddy Compare
  • 11 June 2023

Life Insurance provides peace of mind for you and your family, making sure you are covered in case the worst happens. While life insurance covers you for most causes of death, knowing about other insurance coverage options can help you find a policy more suited to your needs.

Other types of life insurance policies:

  1. Death in Service cover
  2. Joint Life Insurance
  3. Terminal Illness Cover
  4. Over 50s Life Insurance
  5. Critical Illness Cover

With Paddy Compare's expert advisors, you can assess various price quotes before making an informed decision on a policy which suits you best!

In this article

What is death-in-service life insurance?

Death-in-service life insurance is a type of coverage provided by an employer to its employees.

  • It is designed to provide financial protection to the employees' beneficiaries in the event of the employee's death while employed by the company.
  • The death doesn't have to be related to work, the staff member simply needs to be on the payroll.

How does death-in-service life insurance work?

The death-in-service policy provides a lump sum benefit to the beneficiaries.

  • The benefit amount is typically a multiple of their salary (depending on terms).
  • It is free, as part of an employee benefits package.
  • The policy will cover immediate expenses, such as funeral costs, as well as ongoing financial obligations, such as mortgage payments, living expenses, and education costs.

Is death-in-service cover a form of life insurance?

Death-in-service is not a replacement for life insurance, but it could offer employees some peace of mind. It is an insurance cover that is offered as a benefit by the company you work for. It pays out a tax-free lump sum if you're on the payroll of that company when you die.

Some factors to consider:

  • It may not fully cover employees' insurance coverage needs and they may have to supplement this coverage with life insurance.
  • It does not ensure employees' continuous financial protection beyond their employment.

Prior to exploring different types of coverage options, it is crucial to understand the significance of having a life insurance policy and its essential role in safeguarding your financial future. It’s important to ask questions like:

Advantages and disadvantages of death-in-service life insurance

Advantages Disadvantages
The lump sum received from a claim is tax-free. The claim amount is not as large as proper life insurance.
It's usually offered to employees for free by their employer. It could be linked to the company's pension scheme.
Gives employees peace of mind. The employees do not control what type or extent of coverage they will receive.
Provides incentives to staff during the recruitment process. An employer can cancel the policy at any time, giving employees less certainty.

Is death-in-service life insurance guaranteed?

No, it isn't. Your employer can cancel your death-in-service contract at any time. Other factors which make death-in-service not necessarily guaranteed are:

  • It is tied to employment.
  • The coverage is limited.
  • The terms of making a claim can vary and may have exclusions such as for pre-existing medical conditions.
  • This type of insurance may be linked to the company's pension scheme.

Along with the above points, it's important to consider the factors that influence the cost of life insurance premiums in Ireland and also check out some tips on how to get a cheaper Life Insurance policy.

Planning on buying life insurance?

Life insurance can be confusing. How much life cover do you need? Which plans offer the best premiums for your requirement? What's the best plan for you based on your specific situation?

Use Paddy Compare's services to get a clearer idea of what to opt for. We will do the hard work for you and put you in contact with the best life insurance brokers for your requirements.


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