Workers unaware about occupational life-cover

The consultant said more than 70pc of employees thought they were not offered insurance through work, however research discovered around 40pc do have access to work-based life cover.

The study found 20pc of male workers were aware of this type of corporate benefit, while only 17pc of females knew they were covered.

Workers in Scotland were the most knowledgeable about their entitlements with 29pc surveyed claiming to understand their full benefit structure, while only 17pc in Bristol and 16pc in Manchester were using their benefits to its full extent.

Aon Consulting head of risk benefits Paul White said: “Employers have long recognised the value of offering life assurance as part of the overall benefits mix to attract and retain the best talent. Corporate life assurance rates are currently very competitive, often significantly lower than the rates that can be obtained by an individual.

“This provides the employer with the opportunity to give and communicate a cost effective, tax-free benefit that employees really want and indeed will often pay for themselves.”

White added: “Many of those employees who are unaware that their employer provides them with life assurance are often re-purchasing the same cover privately at their own expense.

“As family budgets are becoming more stretched, checking whether life assurance and other benefits are provided by the employer could be one area where over three million Britons could make a substantial saving every year.”

Aon surveyed 1300 people on access and availability to occupational life insurance policies.