What does a Death in Service scheme cost in 2026?
Death in Service scheme cost in the UK is calculated for the workforce as a whole, so there is no honest universal price per employee. A broad market benchmark is a fraction of annual payroll, but the only dependable figure is a firm insurer quote based on the people being covered, their salaries and the benefit promised.
Death in Service is also called Group Life Assurance. It normally pays a lump sum of two to four times salary to an employee's nominated beneficiaries if the employee dies while covered by the scheme.
Why a flat per-employee price can mislead
Two businesses with the same headcount can receive very different premiums. A younger office-based workforce with moderate salaries presents a different risk from an older workforce doing manual or hazardous work. A quote that ignores those differences is only a marketing example.
What drives the cost of Death in Service?
- Total sum assured. Salaries multiplied by the chosen benefit level create the amount the insurer is putting at risk.
- Age profile. The insurer rates the ages across the eligible workforce.
- Occupation and location. Manual work, hazardous duties and some overseas travel can affect terms.
- Headcount. A larger group spreads risk, although the total premium still reflects the total cover.
- Claims history. Existing schemes may be rated using recent claims experience.
- Scheme structure. Registered and excepted arrangements can have different administration and suitability considerations.
Worked example: how the benefit is calculated
| Employees | Average salary | Benefit | Total sum assured |
|---|---|---|---|
| 10 | £35,000 | 4 times salary | £1.4 million |
| 25 | £35,000 | 4 times salary | £3.5 million |
These figures show the insured benefit, not the premium. The insurer then prices that exposure using the workforce data. This is why salary and benefit multiple need to be consistent across every quote you compare.
How to compare Death in Service quotes
Compare the annual premium only after matching the benefit multiple, eligibility definition, free cover limit, termination age, trust arrangement and added support services. A lower premium with a weaker free cover limit can create more medical underwriting for higher-paid employees.
Get a firm Death in Service quote
The Broking Group compares Group Life terms across Aviva, Canada Life, MetLife, Unum and Zurich. See our Group Risk service or request an employer quote. We will tell you what information is needed before approaching the market.