We wouldn't be doing our job properly if we didn't point out that Death in Service benefit is NOT life Insurance. Life insurance is a product that once issued cannot be taken away from you or removed as long as you continue to pay the premium. Death in Service is a benefit that you could lose at any time, due to many circumstances. At the point you lose the Death in service benefit, many factors may prevent you from obtaining alternative cover, potentially placing you, your family and your home at unnecessary risk. It is a very reckless action to protect your mortgage using a Death in Service benefit.
Most death in service benefits tend to be based on a multiple of your income. Typically the benefit your family would receive is between 2 or 4 times your annual income.
For many people this can be a significant figure and an amount they rely upon to underwrite the long term future of their family. While our view is that death in service benefit should be looked upon as a welcome additional benefit rather than an essential part of your financial planning, we recognise that many people do indeed rely upon this benefit.
If you are about to move to another job with a new employer then you will lose this benefit and not get it back until you start work with a new employer, and only then if your new employer offers a death in service benefit. If your new employer does not offer a Death in Service benefit and you are now insurable or unable to afford the cover you need, then the people and things you care about are at risk.
Many people like to enjoy a break between jobs, but don’t want to be without the cover they previously enjoyed. For these customers our short term life insurance product meets the bill. We can cover your death in service benefit for a period between 30 – 90 days.
Some customers realise that even when leaving their old job on Friday and starting with their new employer on Monday, they have no life cover for the 2 days over the weekend. Customers have taken out a minimum 30 day policy just to cover these 2 days.
Working with a range of insurers we are able to offer you death in service replacement insurance. Syndicates at Lloyds of London have occasionally had a appetite for this kind of cover. A simply enquiry form will enable you to get an underwriting decision and price. If you are happy to accept the cover you can be on risk in a matter of minutes.