By Ed Barnes, Director at Champion Health & Benefits

When it comes to employee benefits, many small and mid-sized businesses (SMEs) and owner managed businesses focus on the most visible offerings; private medical insurance, wellbeing budgets, or flexible working.

But one of the most impactful and affordable benefits available is often overlooked: Death in Service Insurance (also known as Group Life Insurance).

While it’s sometimes seen as a benefit only large corporates can offer, the reality is that it’s highly accessible to SMEs and can be a powerful way to attract, retain, and care for your team.

🛡️ What is Death in Service Insurance?

Death in service insurance pays a tax-free lump sum to an employee’s nominated beneficiaries if they die while employed—regardless of whether the death occurs in the workplace or outside it.

The pay out is usually a multiple of salary (often 2x, 3x, or 4x). For example, an employee earning £40,000 with 4x cover could leave £160,000 for their family.

For smaller businesses, this is more than just a policy—it’s a way to provide life-changing financial protection without high costs.

💡 Why its a smart choice for SMEs

1. Affordable for small teams
Group life cover is one of the most cost-effective benefits an SME can offer—often much cheaper than other forms of insurance.

2. Big-business benefits without big-business budgets
SMEs can offer the same valuable protection as large corporates, helping them compete for talent in a competitive market.

3. Shows genuine care
For a small team, the impact of losing a colleague is felt deeply. Providing cover shows that you value your employees and their loved ones.

4. Tax advantages
Premiums are usually not a taxable benefit for employees and are often deductible for the business.

🌐 More than just a pay out

Modern group life schemes for SMEs often include additional wellbeing and health services at no extra cost, such as:

• Employee Assistance Programmes (EAPs): Confidential counselling, mental health support, and financial or legal guidance.
• Bereavement counselling: Professional help for families dealing with loss.
• 24/7 Digital GP services: Quick, convenient access to NHS-registered doctors.
• Second medical opinion services: Independent review of diagnoses and treatments.
• Online wellbeing resources: Tools and advice for physical, mental, and financial health.

These benefits are available from day one, giving SMEs a low-cost way to offer a high-value wellbeing package.

👀 Why do SMEs often miss out?

Many small business owners assume:

• It’s too expensive for a small workforce.
• It’s only available to large companies.
• Their team wouldn’t value it.

In reality, death in service cover for SMEs is simple to arrange, affordable, and highly valued by employees – especially when combined with additional wellbeing services.

🔍 A practical step for people-focused SMEs

Death in service insurance has evolved far beyond being “just” life cover. For SMEs, it’s a cost-effective way to protect your people, enhance your benefits offering, and stand out as an employer who truly cares.

📣 If you run or manage an SME and haven’t considered this benefit before, now might be the perfect time.

📞 Call us on 03330 430 430

📧 Email us at Health@ChampionInsure.co.uk
🌐 Learn more: www.ChampionInsure.co.uk