If you die, death in service benefit pays out a lump sum to your family or next of kin. The lump sum is usually based on a multiple of your salary, for example two, three, or four times your salary. This benefit will usually be tax-free, provided it is not more than your available pensions Lump Sum & Death Benefit Allowance (LSDBA), which is £1,073,100 for the tax year 2024/25.

For your family to receive death in service benefit, you must be employed with your organisation at the time of your death. This type of life cover usually runs until your normal retirement age. If you take time out from your career or leave the company for any reason you will no longer be covered.