Death
in Service

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Implementing Death in Service Group Protection Client Background

A mid-sized professional services firm approached Duke Godley with a key concern: ensuring financial protection for their employees’ families in the event of an untimely death. The company wanted to establish a fair and competitive employee benefit that would both safeguard staff wellbeing and strengthen their overall benefits package.

Problem Statement

The client faced the following challenges:

Employee Protection Gap: Employees were not covered under any group life insurance scheme, leaving families financially exposed should an employee pass away during employment.
Attraction & Retention Risk: Competing employers in the industry offered “death in service” cover as standard, making it harder for the client to attract and retain top talent.
Administrative Burden: The company lacked the internal expertise to assess appropriate cover levels, compare providers, or manage a cost-effective scheme.

Solution

Duke Godley conducted a structured review and implemented a tailored Death in Service Group Protection Plan:

Needs Assessment
- Analysed the company’s workforce demographics, average salaries, and industry benchmarks.
- Agreed a benefit design of 4x annual salary per employee as an appropriate and competitive level of cover.
Market Review & Provider Selection
- Carried out an independent market exercise to identify insurers offering strong terms, competitive pricing, and reliable claims support.
- Recommended a scalable scheme that could grow with the company’s headcount.
Implementation & Communication
- Assisted with scheme setup and HR integration.
- Prepared clear employee communications, ensuring staff understood the benefit and the value it offered to their families.

Outcome

The new group protection arrangement delivered measurable benefits:

Peace of Mind for Employees: Staff now have the reassurance that their families will receive a tax-free lump sum of four times their annual salary in the event of their death while employed.
Enhanced Employee Value Proposition: The company strengthened its overall benefits package, aligning with market best practice and positioning itself as an employer of choice.
Cost-Effective Protection: The solution provided wide-reaching financial security for employees at a relatively modest cost to the employer.
Operational Simplicity: Duke Godley streamlined the entire process, from insurer selection to onboarding, freeing the company from administrative complexity.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Result

At the initial meeting the directors were reluctant to fund the group life cover. After some persuasion the scheme was set up.

Thankfully the scheme was set up in time which enabled the financial securities of three employees which unfortunately passed away due to the covid pandemic

By implementing a tailored Death in Service Group Protection Plan, the company demonstrated its commitment to employee welfare while securing a competitive edge in attracting and retaining talent.

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