Death in Service Vs Life Assurance
"I don’t need Life Insurance; I’ve got Death in Service with my job."
You may have heard this before, however death in service, which is provided through your employment, and life insurance, which is available from an insurer such as us, differs greatly. Life insurance could be tailored to meet your needs, whereas death in service has more structure and often cannot be adapted. We would like to point out the main differences to be aware of when comparing the two products.
Death in Service
- Death in Service pays out a sum of money, if you die whilst employed by the company providing this benefit as part of your overall employment package.
- Death in Service is a scheme normally offered free of charge, as part of the benefit package from your employer.
- If you leave the company and do not have alternative cover, your family could be at risk.
- Death in Service offered by your employer, is normally three or four times your annual salary.
- Schemes are often set up under a discretionary trust, this means you can not be assured who will receive the benefits, in the event of your death.
- You cannot assign your benefits to cover your mortgage.
- You cannot adapt the cover to mirror changes in your lifestyle.
Life Insurance
- With our life insurance policy as well as being able to choose the period you’d like to cover, you also choose the amount of benefit that will be paid. Benefit will also be paid, if you are diagnosed with a terminal illness during the term, rather than when you die, if sooner.
- As well being able to pay the premium both monthly and annually, by paying annually you’ll get a 5% discount.
- If you change jobs or stop working altogether, such as retire, your cover will continue until the end of the chosen term. You can even keep the policy if you move abroad to certain countries.
- Our minimum premium is just £6 per month. The premium you pay as well as relying on your cicumstances is dependent on your chosen amount and period of cover.
- If you want to leave the benefits to a specific person known as a beneficiary, you can place your policy in an absolute trust. You can change the beneficiary during the plan.
- Life Insurance can be tailored to cover your needs. You could choose an amount to help ensure your family maintain their standard of living, or ensure the mortgage on the family home is repaid.
- Legal & General's Life Insurance includes the Guaranteed Insurability Option. In certain events such as buying a new home or getting married, you’ll be able to increase your chosen sum assured, subject to terms, without the need to provide further medical evidence.
For further details of our life insurance policies please refer to the key features document.
