Employee Life Cover price increase FAQs
Employee Life Cover (ELC) prices are increasing on 1 March 2027. Here’s what you need to know.
Why are prices changing?
We’re paying out more claims than we have previously. Increasing ELC premiums helps us ensure the cover remains financially sustainable and continues to protect your employees and their families.
New premium rates
What are the new premium rates?
| Life cover level | Current weekly premium (ELC/EAC combined) | New weekly premium (ELC/EAC combined) | Current weekly premium (ELC-only) | New weekly premium (ELC-only) |
| Standard | £1.96 | £2.02 | £1.85 | £1.91 |
| Double | £3.51 | £3.63 | £3.40 | £3.52 |
| Triple | £5.06 | £5.24 | £4.95 | £5.13 |
How much are premium rates increasing by?
ELC/EAC combined:
| Life cover level | Current weekly premium |
New weekly premium | Weekly premium increase |
| Standard | £1.96 | £2.02 | 6p |
| Double | £3.51 | £3.63 | 12p |
| Triple | £5.06 | £5.24 | 18p |
ELC only:
| Life cover level | Current weekly premium |
New weekly premium | Weekly premium increase |
| Standard | £1.85 | £1.91 | 6p |
| Double | £3.40 | £3.52 | 12p |
| Triple | £4.95 | £5.13 | 18p |
What is the new price breakdown for combined ELC/EAC?
|
Rate |
ELC premium (standard cover + admin) |
EAC premium (cover + admin + IPT*) |
Total ELC/EAC combined premium (standard cover) |
| Old rate | £1.85 | £0.11 | £1.96 |
| New rate | £1.91 | £0.11 | £2.02 |
*Insurance Premium Tax (IPT) not applicable to employers based in the Isle of Man.
When will the new premiums apply?
The new premiums will apply from 1 March 2027, so will take effect from your March 2027 payment schedule.
Pay reference period (PRP) and paper-based accounts
| Period | Rate |
| 22 February 2027 – 28 February 2027 | Old rate applicable |
| 1 March 2027 – 7 March 2027 | New rate applicable |
Will benefit rates be changing as well?
No, the ELC benefit amounts will remain the same. Here’s a reminder of your ELC benefit rates:
| Life cover level | Benefit rate if member dies* | Benefit rate if member dies because of an accident at work* |
| Standard | £42,500 | £85,000 |
| Double | £85,000 | £170,000 |
| Triple | £127,500 | £255,000 |
*Except for the case of ill health or unemployment where the payment is determined by the period of absence. Please see ‘Absence Taper’ on page 4 of the ‘Employee Life Cover rules‘.
Does B&CE benefit from this price increase?
No, the additional premiums from this price increase will remain under the control of the independent trustee board and will be used to ensure that there are sufficient funds available to pay out any claims due.
Will ELC prices be increasing every year?
We’ll continue to review ELC prices every year, and we’ll let you know about any future changes.
How can I explain the cost increase to my finance team?
We’re paying more claims than we have previously. Increasing ELC premiums will help ensure the cover remains sustainable and continues to provide valuable protection for your employees and their families.
Account administration
No, no action needed. The new rates will automatically apply based on your PRP start date. Just make sure your payroll reflects the updated premiums.
If you manage payroll manually or use paper-based accounts, double-check your PRP dates and apply the correct rate. Otherwise, your system should pick up the change automatically.
Yes, an email was sent to employers in October 2026 to notify them of the upcoming increase. A second email will be sent closer to the date the prices will change, to remind employers of the change. You’ll also see the updated premiums reflected in your usual payment schedule and documentation.
The premium is calculated weekly, so changes in your workforce will be reflected in your payment schedule accordingly. The monthly leave dates can only be submitted at the end of the period. Therefore, it can be managed as normal.
If you’d like to change your cover level, please get in touch with our customer services team. You can email us at EAC.ELC@bandce.co.uk or call us on 01293 586666.
No, the premium is the same for everyone – regardless of your company size or how long you’ve been with us. We keep things simple and fair across the board.
A reminder of how ELC protects your employees
Employee Life Cover financially protects your employees and their loved ones.
In 2025, we paid 280 claims totalling over £8.7 million.
- High claims payout – we paid 99% of ELC claims in 2025
- Payouts from £42,500 to £255,000**
- Broad life cover including suicide and accidental death
- Flexible cover that can include seasonal/temporary workers
- Tailored for the construction sector and endorsed by the Construction Industry Joint Council (CIJC).
- Friendly, UK-based customer support
**Dependent upon level of Employee Life Cover and whether the employee died because of an accident at work. This amount will be lower for ‘death in unemployment’ and ‘death in incapacity’ payments.
Contact us
Can’t find the answer to your question here? Email us at: EAC.ELC@bandce.co.uk or call us on 01293 586666. We’re here Monday – Friday, 8.30am to 6pm.
