Skip to content

Protect · Death in service

Protect your team with death in service cover

If the worst happens, your people’s families get support. Kota sets up the cover and keeps it accurate, with HRIS sync and an employee app.

Benefits / Death in service

Death in service

Active
Members covered
128
Cover multiple
4x salary
Nominations on file
121

Members

  • AMAlice MorganCovered
  • SMSam MurphyCovered
  • JEJamie EllisCovered
  • NDNina DuboisCovered
  • JvDJasper van DijkCovered

Powering benefits for 100,000+ employees

  • Remote
  • PayFit
  • carwow
  • Poolside
  • Cloudsmith

Why offer death in service cover?

  • Retention

    Hire and keep great people

    Over half of UK organisations say competition for well-qualified talent has increased. Death in service helps you make competitive offers against larger, established businesses.

  • Care

    Demonstrate duty of care

    It provides financial security for employees’ families and shows your duty of care extends beyond the workplace.

  • Tax

    Tax-efficient by design

    Premiums are generally deductible and it isn’t usually a benefit-in-kind. In the UK, payouts made through a trust normally sit outside inheritance tax.

  • Cost

    Protect your team within budget

    Group pricing is a fraction of individual cover, younger desk-based teams attract lower premiums, and cover scales with headcount.

About deathin service cover

What is death in service insurance?
Death in service pays a lump sum, usually tax-free, to an employee’s chosen beneficiary if they die while employed by you. It’s most commonly 2 to 4 times salary. In the UK some employers offer more for senior roles, often through an excepted scheme; in Ireland, Revenue-approved schemes are capped at 4 times. Payouts are usually made through a discretionary trust, which in the UK normally keeps them outside the employee’s estate for inheritance tax.
Death in service vs. group life insurance
Death in service is the benefit: a lump sum paid if an employee dies while working for you. Group life insurance is the policy most employers use to provide it. Some employers, particularly those with defined benefit pension schemes, pay it from the pension scheme instead.

Support for their families,from day one.

Around 61% of UK employers (CIPD, 2022) offer death in service to all their employees. It’s now a standard part of a competitive benefits package.

See pricingBook a demo

How Kota handlesdeath in service cover

Instead of coordinating a broker, a benefits platform and your HRIS, Kota runs death in service in one system.

Compare

Death in service

ProviderUnumCanada LifeFreedom
Salary multiple4×4×4×
Free cover limit£1.0m£1.2m£1.5m
Cease age757075
Per person / mo£8.40£7.90£8.15

Quoted from your HRIS data · 48 employees

Who offers deathin service insurance?

Insurers you can set up with Kota.

UK and Ireland

and more

How much does deathin service cover cost?

Death in service is priced per group, usually as a percentage of the total sum assured. Here’s what shapes your quote:

  1. 01

    The age profile of your workforce

    The single biggest driver. Younger, desk-based teams are among the lowest-risk groups insurers price.

  2. 02

    How much cover you offer

    A 4x multiple is the most common starting point. Some employers start at 2x or 3x and increase at renewal.

  3. 03

    The size of your team

    Cover gets proportionally cheaper as you hire. Many providers need three to five employees.

  4. 04

    The nature of your work

    Desk-based industries like tech and professional services sit at the lower end of the risk scale.

Example scenario

For illustration, a tech company with 50 employees on an average salary of £45,000, with 4x cover, has a total sum assured of £9,000,000. At 0.15-0.30% of the sum assured, the annual premium is £13,500 to £27,000, or roughly £22-£45 per employee per month.

Illustrative only. Actual quotes depend on your team’s ages, salaries and size.

Tax implications in UK and Ireland

United Kingdom

Premiums are deductible from taxable profits. It isn’t a benefit-in-kind, so employees pay no extra tax. Most schemes sit under a discretionary trust, which keeps payouts outside the estate and inheritance tax.

Ireland

Premiums are generally allowable for corporation tax. It isn’t a benefit-in-kind. The lump sum is capped at four times final salary, and CAT may apply to beneficiaries other than spouses and civil partners.

“Employee experience is fantastic. The app is clean, intuitive, and puts all of the control back to the employee.”

Paul C.Protex AI

How it works in Kota

From cover level to claims, in three steps.

  • Decide how much cover

    Choose a salary multiple, most commonly 4x, and whether cover starts from day one or after probation.

  • Get quotes and enrol

    Insurers quote on your workforce profile. Most employees are covered up to the free cover limit without medical underwriting.

  • Keep it current

    Kota updates the policy as people join and leave. If a claim is made, the insurer pays the beneficiary directly.

Frequentlyasked questions

Is death in service mandatory in the UK?
No, it’s voluntary. But it’s a widely expected part of a competitive offer, especially when you’re hiring against larger businesses.
Is death in service taxable?
Usually not. Premiums are an allowable business expense, and the cover isn’t a benefit-in-kind. In the UK, payouts from a registered scheme are tax-free within the Lump Sum and Death Benefit Allowance if the employee dies before 75. In Ireland, CAT may apply to beneficiaries other than spouses or civil partners.
Can death in service be contested?
Yes, though it’s uncommon. Trustees have discretion over who receives the payout, so a decision can be challenged. Outdated nomination forms are the most common cause of disputes.
Will the 2027 inheritance tax changes affect death in service?
No. HMRC has confirmed death in service benefits are excluded from the April 2027 changes that bring other pension death benefits into inheritance tax.
What’s the difference between registered and excepted death in service?
Registered schemes follow pension rules, so payouts count towards the Lump Sum and Death Benefit Allowance, usually £1,073,100, if the employee dies before 75. Excepted schemes sit outside it, which matters for high earners.
Are there any exclusions for death in service?
Very few, and they vary by insurer. Cover above the free cover limit needs medical evidence, and cover usually stops at an age you choose, often 65, state pension age or up to 75.

Focus on the outcomes,not the admin

See the plans and the price before you decide. No pressure, no obligation.