In the UK many employers offer a 'Death in Service' benefit of (for example) 4x annual salary (e.g. £80,000 if the person was earning £20,000) payable if the employee were to die whilst employed by that company.
Where does this money come from? Is it typically from the employer's own funds or from insurance?
If it's an insurance scheme, does the employer also receive a payout in the event of the employee's death and how much would it typically be?
I'm aware of so called "dead peasants insurance" whereby companies took out life insurance policies on their own employees as an investment strategy. I realise this isn't the same, but that's what set me wondering if the employer also 'benefits' from the death of an employee with a Death in Service scheme?
I'm not sure if this UK-specific, maybe other countries have similar schemes.