Life assurance (death-in-service benefit)
The purpose of life assurance is to make financial provision for an employee's dependants should the employee die while in your employment; the policy generally pays a one-off sum of money to a beneficiary, or beneficiaries, named by the employee.
What is meant by life assurance?
What is life assurance? Like life insurance, life assurance pays out a tax-free sum to whoever you choose when you die. However, life assurance usually covers the policyholder for their entire life – so it's also known as 'whole of life' cover.
What are the 3 types of life assurance?
Many people think that life assurance and life insurance are the same thing, yet there is a subtle but key difference between the two: life insurance covers the policyholder for a specific term, while life assurance covers the policyholder for their entire life.