Risk Only Funds
Risk benefits typically cover life assurance, disability benefits and funeral cover. This is insurance and only pays out at claim stage in the event your passing, or when you are unable to work. The benefits also make provision should you or someone in your family pass away (for the funeral cover). There is no pay-out when you leave, although some funds provide for a continuation benefit. This makes provision for you to take the risk cover with you when you leave. (But you pay the risk premiums as it will be a life policy in your own name).
Risk benefits provide peace of mind for the employee knowing that their family is taken care of at the event of their passing. They are also taken care of should they not be able to work. The employee does not need to take out any cover on a life policy that could be costly and underwriting is also taken into account before cover is granted.