Death in service is one of the most valued benefits a business can offer. If an employee dies while employed, it usually pays a lump sum, often a multiple of salary, to the people they've nominated, covered under the policy at the time of death.
It's a strong, low-cost way to support employees. But it's easy for both employers and staff to assume it covers more than it actually does.
No. Death in service is valuable, but it isn't a substitute for personal cover.
It's linked to employment. If an employee leaves the business, changes jobs, resigns or is made redundant, the cover usually stops, unless a continuation option applies, which isn't common. That means it shouldn't automatically be treated as a complete replacement for personal protection.
Employees may still need their own life insurance, especially if they have a mortgage, dependants, or long term financial commitments that go beyond the workplace benefit. Personal cover is shaped around their own circumstances and stays with them regardless of who they work for; death in service is shaped by the employer's scheme rules and disappears the moment employment ends.
Because there's usually only so much detail that fits into onboarding, a handbook, or a benefits platform summary. All useful, but rarely the full picture. If you're setting up death in service for the first time, it's worth planning how you'll explain it properly from the start, rather than leaving people to piece it together later.
An employee might know they have "four times salary" cover, but not know who receives it, whether they need an expression of wish form, how it interacts with personal life insurance, or what happens if they leave. Some employees will find the benefit is enough for their situation. Others, particularly those with bigger mortgages, children or more complex family arrangements, will find it's only part of the picture, so it's worth them knowing where the gaps might be.
Seven things, ideally: what the benefit is designed to do, how the payout is calculated, who may receive it, why expression of wish forms matter, whether cover continues if they leave, how it differs from personal life insurance, and who to ask if they have questions.
None of this needs to be heavy or complicated. The best communication on death in service is usually simple and reassuring, and it's what turns a benefit employees barely notice into one they genuinely value.
Yes, if it's communicated well. For SME owners and HR leads, it can be part of a wider culture of care, showing employees the business has thought about support beyond salary. It sits comfortably alongside other employer protection options too, such as employer income protection, employer critical illness cover and private medical insurance.
The benefit doesn't need to be complicated to be valued. It just needs to be explained properly.
When should employers review death in service?
A review is worth doing if your team has grown, salaries have changed, your benefits package hasn't been updated in a while, or employees have started asking more questions about workplace support. It's also worth revisiting if the cover itself is fine but the way it's communicated could be stronger. Sometimes the biggest improvement isn't the policy at all; it's making sure employees actually understand what they're getting.
Speak to BPS
At BPS, we help businesses understand protection and employee benefit options in a clear, practical way.
If you already offer death in service, we can help you review whether it still reflects your team and business today. If you're considering it for the first time, we can explain how it works and how it fits alongside wider employee support.
To discuss death in service or wider employer protection options, speak to the BPS team today.
Please note: The information contained within was correct at the time of publication but may be subject to change.
The right cover will depend on your business circumstances, policy terms and eligibility. BPS can help you understand the options available and what may be suitable for your needs.
