What is the most common basis for calculating death-in-service life insurance?

The most common basis for calculating death-in-service life insurance is typically four times an employee's salary. This multiple reflects a balance that provides a substantial financial benefit to the beneficiaries while also being manageable for employers to offer as a part of their employee benefits package.

The rationale behind choosing this multiple is that it generally provides enough coverage to support the family or dependents of the deceased for a period during which they can adjust to the loss and potentially replace the deceased's income. Although various organizations may choose different multiples based on their own policies or industry standards, four times salary has emerged as a widely recognized and utilized benchmark in many workplace benefits.

Calculations using other multiples, such as three, five, or six times the salary, may exist in some companies or industries, but four times remains the most commonly encountered figure in practice.