Advisers must check their corporate clients' benefits package to see whether life insurance has been built into it, as RedArc warns some employees may be cut out of state benefits.
Christine Husbands, managing director of support provider RedArc, warned as the government's support for the bereaved is changing on 6 April, employees who are relying on this support for their families in the event of their death may be better off in a workplace scheme.
She said: "Employers should be checking their existing employee assistance programmes (EAPs) or insurance policies as many group life insurance plans have in-built bereavement support that can be accessed by the entire company – even if not everyone is covered under the insurance plan."
On 6 April, the new bereavement support payment will be paid to families instead of the current suite of state bereavement benefits.
Our experience is that finances are not the first thing people think of when experiencing a family bereavement. Among the most significant amendments, changes will materially impact parents as they will only receive payments for 18 months, instead of the previous system, where the child was supported until they became no longer eligible for child benefit.
Ms Husbands added: “Bereavement support is about to become critical as these changes begin to bite.
"Insurers should also be looking to work with reputable bereavement support services, because although financial considerations are undoubtedly important, our experience is that finances are not the first thing people think of when experiencing a family bereavement.
"Emotional and practical support are both equally, if not more, important in supporting people through their grief."
Recently, former Premier League footballer Rio Ferdinand has gone public to tell how he found it difficult to cope with the death of his wife, dealing with bereavement and supporting his children.
Ms Husbands said the same problems can affect anyone, whether they are a capped England footballer or an office worker.
She added: "Employers need to step up now more than ever to support their staff in similar situations; and insurers need to recognise the importance of including bereavement support in their policies."
simoney.kyriakou@ft.com
