Group Life Cover (Death in Service) is life assurance provided by a company for its employees (the employer pays the premiums to cover the employees). It provides a lump sum on the death of an employee for their dependents.
On the death of a scheme member, a lump sum is paid to trustees. The trustees pass this along to the member’s estate.
This is a way for an employer to provide financial security to an employee’s family in the event of that employee’s death during service. This provides important peace of mind to employees.