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Could checking your work benefits save you money on insurance?
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Looking for income protection insurance?
Find the right income protection policy using the service provided by LifeSearch.
Get a quoteJust 18% of employees whose company offers benefits are fully aware of everything available to them. That’s according to research commissioned by Group Risk Development (GRiD), the industry body for the group risk protection sector.
That means you could be overlooking benefits such as life insurance, income protection, critical illness cover and private healthcare. You might even be paying for protection you already get through work.
Before buying or renewing cover, it’s worth checking what you get through work. Which? explains how to uncover your workplace safety net, identify any gaps and find out what happens to your cover if you leave your job.
Check what benefits you get through work
Start by checking your employment contract, staff handbook or benefits portal. If the details aren’t clear, ask your HR team for a full list of the benefits available.
Look for life insurance, often called death-in-service cover, as well as income protection and enhanced sick pay. Your package may also include critical illness cover, private healthcare or a health cash plan.
Check what each benefit provides, when it starts and ends, and whether you need to sign up.
You should also make sure any nomination or expression-of-wishes forms showing who you'd like to receive a death-in-service payment is up to date. Depending on how the scheme is set up, the final decision over who receives the payment may rest with its trustees.
- Find out more: best health insurance
Is your workplace cover enough?
Workplace cover can be valuable, but it may not provide all the financial support you need. Compare the amount it would pay with your debts, household expenses and how long your family might rely on your income.
For example, if you earn £40,000 and have death-in-service cover worth three times your salary, your family would receive £120,000. If you still owe £180,000 on your mortgage, this would leave a £60,000 shortfall, without considering other living costs.
These figures are illustrative. You should use your own salary, mortgage balance and household expenses when assessing your cover.
For income protection or sick pay, check how much of your earnings you would receive, when payments would start and how long they could continue. You should also check whether health benefits cover all the treatment you might need and whether limits or exclusions apply.
Find out more and get advice on income protection using the service provided by LifeSearch. Discover more.
How to fill gaps in your workplace cover
If your workplace benefits fall short, you could take out separate life insurance or income protection. You may also want to consider private health insurance if you don’t already receive it through work. The right cover will depend on your circumstances and what you need to protect.
For life insurance, consider how much your family would need to cover the mortgage, other debts and ongoing expenses.
For income protection or enhanced sick pay, check how much of your earnings you would receive, when payments would start and how long they could continue. You should also check whether any health benefits you receive cover all the treatment you might need and whether limits or exclusions apply.
Compare the cost alongside the level of cover, exclusions and policy length. The cheapest policy may not provide the protection you need, so check the terms carefully before buying.
Our guides to the best life insurance and best income protection insurance compare leading providers, policy features and costs to help you find the right cover.
What happens to your cover if you leave your job?
Workplace benefits are usually tied to your employment, so they may end when you leave your job. If you move to a new employer, it might offer different benefits, or none at all.
Before resigning, retiring or changing jobs, check when your existing benefits end and when any new ones begin. This will help you spot a potential gap in protection.
A personal insurance policy isn’t linked to your employer, so it can continue when you move jobs, provided you keep paying the premiums and meet the policy terms. If you’re considering arranging your own cover, bear in mind that your age and health can affect its cost and availability.
