One of the most valuable employee perks around is death in service benefit. It’s a form of life insurance and pays out if an employee dies whilst employed by that business. The benefit is provided by an insurance company as a stand alone policy or it might be part of the company’s occupational pension scheme.
Usually it will pay three or four times salary to the estate of the deceased employee and because it can usually be nominated into trust to a recipient it can pass outside the deceased’s estate for IHT purposes. It’s therefore worth having.
