Death In Service
Time to offer an employment package that helps your business attract and retain talent?
Death In Service provides peace of mind to employees by ensuring their loved ones will be supported by providing a tax-free lump sum in the event of an untimely death. Offering your employees Death In Service as part of their employment package can help your business attract and retain talent, while demonstrating your duty of care as an employer.
Death In Service is a form of life insurance policy that commonly pays out a lump sum to your employees dependents if they die prematurely while employed by your business. This can provide essential financial support to a spouse, partner or other family member. The amount of cover will vary depending on each employee’s salary as well as the kind of cover selected for the Death In Service scheme.
Allowable business expense
Some policies may also have an optional dependent pension. This allows your business to provide a pension for an employees’ spouse or even their children. There may also be the option to allow an employees’ partner or spouse to take out their own separate Death In Service policy.
Under current UK tax laws, Death In Service premiums are also, in most instances, an allowable business expense enabling your business to protect your employees without restricting your organisations cash flow.
Qualifying for a payment
A Death In Service policy can be applied to your entire workforce. Employees are covered regardless of their age or the position they hold in your organisation. Your business pays the cost of the premium rather than the employee and the insurance provider bases the cost of the premium on the risk factors of your workforce as a whole rather than each individual member.
Employees need to be on the payroll at the time of their death to qualify for a payment. Although the money from the Death In Service benefit is intended for the employees family, dependants or another beneficiaries they choose, in many cases it will first go into a discretionary trust. This prevents the pay-out from being liable for Inheritance Tax.
To find out more, please contact Bradstock Bourne.
Learn more about our services
For a complimentary, no obligation consultation, please contact our highly experienced team of In-dependent Financial Advisers on (0115) 941 8585 or email info@bradstockbourne.co.uk.
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