Death in service benefit

[Headyhurty]

I am supposed to be well provided for through DH's work in the event that the worst happens. 3 x salary.

He is now terminally ill and hasn't worked since July. Work have been really good and paid him throughout but it now looks like they are moving towards termination. You can't blame them, it will soon be a year done he worked.

However, presumably this means his life insurance disappears? Is there a way to avoid that? He has a terminal diagnosis and is bedbound so no prospect of working between now and the end, but death is not imeadiately imminent.

It feels like a situation lots of people must find themselves in, is there a solution?

Sorry if the post seems very hard headed, this is one small aspect of what I'm dealing with atm.

I would imagine his HR department would be able to give you the best information. So sorry to hear you are going through this.

With mine, if you cease working for the company then the insurance (which is tied to being in the pension plan) also ceases on that day.

I've been looking at quitting work and realised it'd be a risk too far. The details should be in the insurance (or pension) documentation, or company policy.

Also my mortgage requires life insurance, which I only have through work. That might be another thing for you to consider. Sorry to raise that concern.

I hope other posters have some more positive input for you.

Speak to HR.

If he has a final salary pension, ask about possibility of a serious ill health lump sum as well.

I'm sorry you are in this situation

Yes, ask about critical illness cover. My pension lump sum pays out the death in service part early if I'm diagnosed with an illness meaning I'll likely live less than 6 months. There might be something like this?

Such a hard situation. I think the benefit will cease to apply as soon as his employment is terminated, unfortunately.
Do talk to HR. Best of luck.

So sorry for your sad news and the situation you find yourself in. Have his employer been informed that he is terminally ill? Because I think if so, he is protected under the equality act, I think it’s treated as ‘disability’. So ie he can’t be dismissed etc and lose out on any benefit. I might be wrong but in your place I’d think It might be very worth talking to an employment lawyer. In addition, some life insurance policies will pay out after a terminal diagnosis (not sure if this would apply to a death in service policy though). Maybe this thread might get better responses in the legal section?

Does he currently have some sort of income protection through work? Is it private or public sector? I would try to find out the details of any income protection/insurance and would try to find out which would be financially more beneficial for you. I am HR in the Public Sector in Ireland so I may be of absolutely no use to you but I know what I have had to help negotiate for staff members in your husband's situation before and we have always recommended what would be the most beneficial financially for the staff member. As much as I dislike going against my own profession here I also think it would be worth asking for as much information as possible and engaging an independent employment law solicitor or at least contacting Citizens Advice or whatever the UK equivalent is. I'm sorry you're having to deal with this.

If he is ill the company could keep him as an employer at minimum cost although you will only receive ssp . It would be utterly inhumane to terminate his employment and deprive you of an insurance pay-out (which they dont fund anyway). You may need to find someone senior to talk with- I cant believe they would not be sympathetic

Just found mention of it on the Unison website, page three in the link. Depending on his illness he may be protected under the equality act:
www.unison.org.uk/content/uploads/2019/03/Terminal-illness-03-2019.pdf

Thank you for posting this @Headyhurty, we are in a similar position and it is a pondering that has crossed my mind too (AKA something else to panic about in a truly shitty situation).

I’m so sorry OP.

Check with his pension scheme(s), there could be options around ill health retirement and there will be payouts in the event of his death (the amounts may depend on whether any benefits are already in payment - they should be able to talk you through whether it would be more beneficial for him to take ill health retirement first).

@anniegun

If he is ill the company could keep him as an employer at minimum cost although you will only receive ssp . It would be utterly inhumane to terminate his employment and deprive you of an insurance pay-out (which they dont fund anyway). You may need to find someone senior to talk with- I cant believe they would not be sympathetic

This. Don't panic until you've spoken to them. Chances are fine that it'll work out.

I work in pensions - the company I work for would offer your husband the option to retire through Ill health - given the circumstances, I would expect he would qualify for the Critical Ill Health Retirement option - which actually would commute his pension for a lump sum on leaving work. I think (but could be wrong) that a spouse pension would still be payable on his death.
As above - speak to HR and get the best option for you/your husband.

Sorry to hear of your plight. If DP is diagnosed as terminally ill, make an application for PIP.