Whether you’re a large business or SME, taking care of your employees is essential if you want to maintain a high staff retention level and boost the long-term health of your business. One way to show your employees you care is by offering a group life insurance policy. Here you’ll find everything you need to know about group life insurance and how offering it to your employees can be a great benefit to your business.
What is group life insurance?
In the event of an employee’s untimely death, a group life insurance policy will provide money to their loved ones, ensuring they are well looked after should anything happen. This payment can take the form of a fixed lump sum or can be a tax-free lump sum based on a multiple of your employees’ salary. No matter how many employees your business has, taking out group life insurance will cover all of them under one single policy.
Benefits of group life insurance
The events of the last few years have understandably led to more employees thinking about life insurance. Taking out a group life insurance policy gives your employees peace of mind, as they know that their loved ones will be protected should anything happen to them. Including a group life insurance policy as part of your employee benefits could give you the edge when it comes to hiring the top talent.
As well as the standard policy, many companies that offer group life insurance also provide extra support for employees, in the form of mental and physical wellbeing apps and access to a virtual GP. They can also use gamification techniques to offer rewards, such as virtual currency earned through practising wellbeing which can then be used on vouchers or discounts.
As well as financial support, loved ones of the deceased can also get bereavement to help them through every step of the funerary process.
Another benefit of group life insurance is that it can help both the business and their employees financially. Many workers in the UK do not have a personal life insurance policy, instead relying on their personal savings to take care of their loved ones in the event of their death. When a business takes out a group life insurance policy it covers every employee, no matter how many the business has. A group life insurance policy will typically be cheaper than a personal policy, so by taking it out you can ease the financial burden on your employees.
Finally, a group life insurance policy will cover all employees regardless of any health conditions, whereas an individual policy would typically require a medical exam.
Is group life insurance right for your business?
Taking out a group life insurance policy is often much cheaper than taking out individual policies and will provide coverage to every employee regardless of any health conditions. What’s more, an attractive group life insurance policy can make you stand out amongst competitors, letting you hire the best workers in your industry. Every business is different, and some may be better suited to this policy than others, but it’s worth looking into as a good group life insurance policy can make a real difference to your business.
