Death in service benefit

Tax-free lump sum payable on the death of a group life and pension scheme member while still employed prior to retirement. The benefit is a multiple (e.g. four times) of the deceased’s annual earnings. The trustees pay out the lump sum and are not necessarily bound by the member’s nomination as to the beneficiary. Early leavers may exercise rights under a continuation option, to continue with life cover without evidence of health.

Leave a Reply

Your email address will not be published. Required fields are marked *