Now Pensions has teamed-up with Ellipse to offer life insurance as an optional part of its auto-enrolment solution.
If employers require life cover for their employees as part of their auto-enrolment benefits, Now Pensions will offer cover from Ellipse.
The cover would be set up under the firm's master trust, saving employers the need to register their own trust and also meaning that the cover is paid free of inheritance tax should an employee die in service.
Morten Nilsson, CEO of Now Pensions, said the multi-employer trust was targeting improved use of technology.
"Employers who are preparing for auto-enrolment are generally reviewing their entire benefits package," he said.
"Providing life cover is an additional benefit which companies can offer at a low cost, and which is valued by their employees.
"This partnership is therefore key in enabling us to give our members access to a complete retirement package of both pension provision and life cover, something which not all providers are able to offer."
John Ritchie, CEO of Ellipse, added he was pleased to be signing the agreement.
"We are businesses that thrive by challenging the status quo and we are very much looking forward to being part of their growth story.
"Furthermore, clients attracted to their offering can now access life cover to enhance their employees' benefits."
