Death in Service
Group risk benefits are designed to protect employees and their families in the event of long-term illnesses (critical illness), accident or death in service, providing income protection for employees.
Why LHK
Death in Service is a valuable employee benefit that provides a tax‑free lump‑sum payment to an employee’s family or chosen beneficiary if they pass away while still employed. Most schemes base the benefit on a multiple of salary — commonly three or four times annual pay — giving families immediate financial support at a difficult time. It’s typically included as part of a wider benefits or pension package and doesn’t require medical underwriting, making it a simple, accessible layer of protection for employees.
This benefit helps families manage short‑term costs and maintain stability when it’s needed most. While arrangements vary by employer, Death in Service is generally low‑cost to provide and helps demonstrate genuine commitment to employee wellbeing. For staff, it offers peace of mind, knowing their loved ones would receive meaningful support, tax‑free and paid promptly in line with scheme rules.
