Death in service payments are considered to be a significant perk for those working in many professions. In her latest article, Laura Richardson explains whether death in service payments are actually better than life insurance payments . . .

Regardless of your financial or employment status, it is highly advisable for anyone who has dependents to take out a life insurance policy to ensure that those dependents would be cared for should the worst happen.

Many employers offer a death in service payment which pays a lump sum to your chosen next of kin should you pass away during your employment. The NHS introduced a specific death in service policy in April 2020 to pay out a lump sum of £60,000 to the families of health or social care workers who die as a result of Covid-19. However it is important that you determine whether you would be eligible for this payout should the worst happen, as the scheme does not currently officially include healthcare students on unpaid work placements. Unions have repeatedly been calling for the government to close what is being termed a ‘loophole’ in the scheme. In a letter to Mr. Hancock this week, union Unite has urged the government to officially amend the scheme as a ‘matter of urgency’ stating that “students deserve this peace of mind at a time when they are doing so much to support our country through the coronavirus pandemic.” A spokesperson for the Department of Health and Social Care has responded on record stating that “whilst the NHS and Social Care Life Assurance Scheme is designed to cover employed staff, we are clear that students on placement will be treated in the same way as other staff working on the frontline.” However, due to the uncertainty surrounding this, many student nurses will still feel that they wish to pursue an alternative provision such as life insurance to allow for complete peace of mind.

It is important to note that the NHS and Social Care Life Assurance Scheme is not the only financial pay-out scheme available to NHS employees. If you are actively contributing to the NHS Pension Scheme, you are also entitled to related benefits such as a life assurance lump sum pay out. It is always advisable to fully understand exactly what you are entitled to from your employer when deciding upon the level of additional life insurance cover you need.

At Andrew Douglas Wills & Legal Services, we understand the importance of your peace of mind when it comes to looking after your family should the worst happen to you. Thanks to our trusted partners, we are proud to be able to offer a complete protection service at a cost-effective rate, including accessing insurance products that are only available through professional service providers such as the expert team at our partner firm. For further information please contact Andrew Douglas Wills & Legal Services, we welcome your enquiry and look forward to granting you that all-important peace of mind.

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