Many companies will offer free life insurance cover as part of an employee benefits package. This insurance cover is usually offered to employees at either a fixed amount or based on a particular formula. i.e., multiple of salary. In some instances, you may be able to take up more life cover or add additional benefits at discounted rates. However, there are a few things you should be aware of when taking this option.


1. What are your needs?

Deciding on the right cover for you involves considering several factors. Things like your financial goals, objectives, and current situation all play an important role in the decision-making process. Having a discussion with a financial advisor will help you work out if your employer’s insurance cover is enough to meet your needs.


2. What does the cover include?

Consider if the life cover offered by your employer includes additional benefit options for things like trauma, total and permanent disability, or income protection. You should also understand the amount you are covered for, and whether this will change over time. For example, your life insurance cover amount may change with the amount of your salary. Knowing how much cover you have and what that cover entails is a good starting point, especially if you’re looking to take advantage of the cover offered by your employer.


3. How will your personal cover work with the employee cover?

There are many options when it comes to structuring your own personal insurance plan and the cover provided by an employer. It’s important that you understand if there are any unintended consequences from having two separate policies.


4. What happens if you change jobs?

Changing jobs may not mean an end to your employer cover, as you might be able to simply continue with the same cover privately with a Continuation Option. Talk to a financial advisor to help consider all the options.


Life insurance offered by an employer can provide useful basic insurance coverage, either to cover you completely, or as part of your wider insurance plan. It’s important to understand what you are being provided with and our AdviceFirst advisers can help you to get informed and make smart decisions.

To talk through your options, call us on 0800 438 238 or email

AdviceFirst is a Financial Advice Provider (FSP23242).