More than one in 10 (14%) respondents believe that every employer provides death-in-service benefits, according to research by Aviva.
Its Protecting our families report, which surveyed 2,500 UK adults, also found that 18% of respondents do not know what support they would get from their employer if the main income earner within the family was unable to work for at least six months due to ill health.
The research also found:
- 52% of respondents know that death-in-service benefits cease once an employee stops working for the employer that provides them.
- 27% of respondents think that death-in-service payments are subject to tax.
- 26% of respondents believe death-in-service benefits only apply if they die at work or in a work-related situation.
- 50% of respondents cite their employer as their most trusted source of financial support should their family face income loss for at least six months due to ill health, and 42% of respondents cite their partner’s employer as their most trusted source of financial support.
- 10% of respondents believe they would receive sick pay indefinitely if the main income earner within the family was unable to work for at least six months due to ill health.
Paul Brencher (pictured), managing director, individual protection at Aviva UK said: “Many parents say they would depend on government or employer support if they became too ill to work, but do not know what this would actually entail.
“Affordability is also frequently cited as a barrier to having protection in place, but our research suggests families do have space to reduce their monthly spending. There is a clear challenge for the industry to ensure cover comes at a reasonable price. However, families must also ask themselves whether they can really afford not to be protected against the unexpected.”