Death in Service Benefit
for Employers & Directors
Protect your people. Strengthen your business.
At Bright Money, we help UK employers and accountants understand how Death in Service Benefit can support staff, protect directors, and create a more caring workplace. It’s simple, tax-efficient, and a smart way to show employees that you value them.
Whether you run a small business or manage payroll for multiple clients, we’ll make the setup easy — and ensure your cover works in the most efficient way for your company.
⚖️ Why Employers and Accountants Recommend It
Tax-efficient protection
Premiums are normally treated as a business expense, so they’re eligible for corporation tax relief. No National Insurance costs or P11D implications for staff.
Attract and retain talent
Offering a death in service benefit signals you care about employee wellbeing — a strong selling point in recruitment and retention.
Easy to administer
We’ll handle everything: setup, trust creation, and communication with staff. Once in place, it runs smoothly in the background.
Great for small companies and directors
If you’re a limited company director, you can get similar protection through a Relevant Life Policy — giving you the same cover personally, in a tax-efficient structure.
🧮 Death in Service Benefit for Accountants
Accountants love this benefit because it’s clean, compliant, and adds value for their clients.
We’ll help you:
Advise clients correctly on corporation tax treatment
Understand how to structure group schemes or single-director cover
Compare Death in Service vs Relevant Life options
Get access to quotes from leading UK insurers with no extra admin
We work with many accountancy firms who trust Bright Money to manage benefits on their clients’ behalf.
👨👩👧👦 Options for SMEs and Limited Companies
Group Death in Service Scheme
Ideal for employers with multiple staff. Cover everyone on the same simple plan, with one premium and one renewal date.
Relevant Life Policy (for Directors or Key Employees)
For one-person businesses or company directors — personal life cover paid for by the company, usually qualifying for corporation tax relief.
Both options give peace of mind to your team and financial efficiency to your business.
💡 Example: How it Works
Emma runs a small design agency with 10 staff. She sets up a group death in service benefit providing 4x annual salary cover.
- It costs the business under £10 per employee per month.
- Premiums are tax-deductible.
- If something happens, the family receives a tax-free lump sum.
Emma gets staff loyalty, better recruitment appeal, and peace of mind knowing her team is protected.
FAQ
about
Death in
Service
Benefit
Is Death in Service the same as life insurance?
Not exactly. Life insurance is personal; Death in Service is provided by an employer. Both pay a lump sum, but the setup and tax treatment differ.
Can directors get Death in Service cover?
Yes. If you’re the only employee, a Relevant Life Policy works in the same way — designed specifically for directors and high earners.
Is Death in Service taxable?
No. Payouts are made through a trust, so they’re not subject to income tax or inheritance tax.
What happens if an employee leaves?
Cover stops automatically, but they can often transfer their policy or take out personal cover if they wish.
Do I need a trust?
Yes — we’ll handle this for you. The trust ensures tax-free payout and smooth distribution of benefits.
Ready to Protect Your Team?
Bright Money makes setting up Death in Service Benefit simple, compliant, and cost-effective.
You’ll get expert advice, no jargon, and support every step of the way.
Call us: 01844 390910
Email us: info@bmimoney.co.uk
Or use the form below and we'll be in touch.
