6 Crucial Reasons to Offer Life Insurance to Your Employees
02 June 2022
Life insurance for employees, also known as Group Life Insurance or Death in Service cover, is a life insurance policy offered by an employer to their employees. It often comes as part of an employee’s benefits package. As an employer, it means that if the worst was to happen and a member of staff was to pass away while in your service, you would be able to pay their family a lump sum to help them through.
Here’s how offering your employees the option of group life insurance can benefit both your workforce and your company:
1. Group Life Insurance Packages are Highly Valued by Employees
It’s estimated that only around thirty percent of people in the UK have life insurance. According to research by Which? a third of these are parents, meaning that they have the future and financial security of their children on their mind too. Group life insurance policies are very popular with employees as they are easy to arrange and they don’t have to pay much, if anything towards it.
2. It Can Help to Attract and Retain Workers
Many employees, particularly those who have families to consider, will think twice about leaving your company if they have a life insurance policy with you. They will know that if they choose to resign, the payments to this policy will stop and their family’s security will be damaged. Likewise, for those people seeking work, a group life insurance policy can often act as an excellent incentive for them to choose your company.
3. Reduction in Recruitment Costs
According to the recruitment agency Glassdoor, hiring a new employee costs a company on average £3000, and it often takes approximately 27.5 days to find the right candidate. By retaining your staff for longer, these figures will reduce dramatically.
4. You May Be Able to Offer Your Workers Other Benefits That Come With the Insurance Policy
Many group life insurance policies offer other benefits that can help your employees. These may include things like private GP appointments, nutrition programs, physiotherapy sessions, counselling, fitness programs, and mental health support. All these can help boost your workforce and ensure that they are happy and healthy. The happier and healthier they are, the more productive they’re likely to be.
5. Improves Staff Morale
Knowing that they work for a company that is prepared to go the extra mile for them is an instant morale boost for many employees. It helps them to feel wanted and cared for, whether they work for a smaller employer or a large multinational corporation. Group life insurance inspires people to live well and rewards them for doing so. It can offer some excellent additional features and incentives too – most of which were outlined above.
6. Reduction in Absenteeism
Group life insurance can reduce absenteeism as it often comes with health insurance as an additional feature. As such, employees are more likely to seek medical help before an illness or condition becomes too debilitating to come to work. Physiotherapy sessions, if available, can help with things like back pain – a common reason for absenteeism. Furthermore, if counselling is provided, it can limit stress-induced absences or burnout issues.
And there you have it - 6 crucial reasons every employer should offer life insurance to their employees.