There are many perks and benefits that businesses can offer their employees. The most popular amongst these is life insurance. It is effective because it supports the primary purpose of providing support by keeping your resources healthy and happy. Offering group life insurance is a clear indicator of a business’s focus on its employees’ well-being.
Most small scale business owners agree about the concept of offering life insurance benefits. Many seasoned business owners and managers know that such measures boost their staff’s morale and end up benefiting their company. If you are also considering the option of Group life Insurance, assess the following vital reasons to offer health insurance to employees.
1. Group Life Insurance is Convenient to Manage.
The life insurance advisor or broker can guide you through the whole process. If you go through a service agent, they will help you identify and finalize a plan that fits you and your team. The selection can be customized to include variables specific to the industry you work in. The standard coverage requirements of all eligible staff are usually easily managed through an agent.
The agent will arrange the entire policy and keep you updated on what is going on in the activation process. Agents also act as help desks for the staff queries regarding the policy in the initial stages.
2. Life Insurance benefits result in Happy Employees
According to a survey by an international employee research website, employees cited life insurance as their most significant benefit. It is one of the factors that carry weight when they evaluate job offers.
Since life insurance is a differentiating factor, employers should offer group life insurance and keep on updating it over time. Offering group insurance should help recruit desired employees and entice them to stay longer at your company.
3. It is Cost-Effective
Life insurance can be expensive to get and keep on an individual basis. It is significantly cheaper for both employers and employees when taken in the group format. In technical terms, the risk is spread across multiple factors, and economies of scale also apply. There is a low probability of 100% of the covered employees needing full life coverage at any point in time. This low probability helps to scale down the premium accordingly.
This lower cost makes group insurances more attractive for employers and employees. Employees get more comprehensive coverage than what they would be getting for an independent policy, paid from their own pockets. Employers can negotiate better and get a better deal for group policies.
4. Group Life Insurance Boosts Employee Morale
Employers that invest in group insurance for their staff are sending a clear message. They show that their employee’s future security and well-being are important to them. They also state that it is worth investing in a group policy for their families’ well-being and peace of mind.
Many employees find life insurance a blessing when they or someone in their family faces an adverse event. Having the safety net of a life insurance policy for their next of kin is a considerable benefit in financial and emotional terms.
As employers, we want our employees to bring their most productive and effective selves to work. Worrying about the future security of their families can drain energy from employees.
the case for Life Insurance
From encouraging a healthy and happy work team to saving money, there are various factors that are significant grounds to pick a policy and offer group health insurance to your staff.
Employees perceive life insurance as one of the most valuable benefits an employer can offer. When a company removes the burden of planning for any eventuality in case of their sudden death from an employee, they feel more satisfied and invested in your company’s growth.
Life insurance for employees helps significantly in attracting and retaining the best talent. It may sound expensive, but it’s not. On average, a whole year’s premium can cost less than 4 days’ salary of an employee.
Sadia Zaheer holds a Masters in Business Administration from IBA, Karachi. After working in several financial institutions in Client Management, Corporate Lending, Islamic Banking and Product Management she jumped careers to pursue a career in writing.
She is a Finance, Business and HR Development writer with four years of experience. She reads a lot and takes care of her multiple cats to remain calm.