If you have been thinking about ways to spread out the benefits of employee-wellness programs in the workplace, nothing will work better than adding the benefit of group life insurance to your wellness program.
Under group life insurance provided by an employer, the family of employees get a lump sum amount if anything happens to them, as in case of death or physical disability.
Protecting their family is one of the biggest concerns an individual can have and by getting life insurance from their employer, they certainly feel more secure, as they know that their families will be taken care of if something untoward happens to them.
Group life insurance benefit is one of the most appreciated foundation components of employee benefit program and is also considered as the most valued benefit by the employees. According to Ellipse reach conducted in 2016, 37% of employees had rated life insurance as the 2nd most preferred employee benefit – with 1st position to health insurance.
Read on to find out further that why every employer should consider adding this aspect in its employee-wellness program:
Getting a suitable candidate and being able to retainhim in the organization are two entirely different things. Organizations must constantly look for new ways to keep their employees retained.
By offering benefits such as group life insurance, organizationscan make their employees trust them. In addition to that, buying any sort of benefit in bulk also allows getting it at a much lower rate as compared to the individual rate.
2. Financial Security Improves the Employees’ Productivity
Research conducted by MetLife has shown that every one in three employees is distracted or stressed at work due to the reason of personal finance. Because of this, they are not able to deliver their expected level of productivity at work.
Benefits such as life insurance play a key role in mitigating those uncertainties and worries and let your employees focus on the job at hand. Also, when staff knows about the comprehensive benefit package including life insurance offered by the organization, they feel more satisfied and hence are more likely to stay with the organisation in the long run.
3. Following the Right Practice
Even though relationship between an employee and his employer is supposed to be strictly professional, what would one do in such scenarios where an organization considers them as familymembers? After all, they spend a huge chunk of their daily routine ontheirrespective organisations – don’t they deserve a more concerned approach from their employers?
Death in the workplace is a very uncommon scenario to imaginethough, it can still happen. Hence, it’s good to be prepared in advance forideas to deal with such scenarios.
In modern days, the personal relationship developed between an employee and his employer is stronger than ever before. Therefore, it becomes the moral responsibility of the latter one to ensure that the family of its employees is looked after and supported financially, in case something untoward happens to the former one.
Few more reasons to take group life insurance benefit into account:
· First and foremost, it is affordable. The average cost of Rs. 100,000 benefit will come to approx. Rs 100 per year per employee. It means that for a small organisation with a staff of 10 people, the cost of insurance will be somewhere in between Rs. 1000 and Rs. 1500 per year which is indeed not a big sum.
· It also works as a supplement to pension savings, as it provides financial security to those employees who aren’t able to manage large pension savings before their retirement.
· Most of the times, life insurance benefits provided by the employer take care of the medical expenses as well. Hence, it saves the cost of signing up for a health insurance policy by the employees, which again works in the favour of the organisation by bringing-in more loyal employees.
· It offers tax rebate. The premiums paid by the employer fall into tax exempted investment, as it’s considered as a business expense for the organisations. Thus, employers end up saving some good amount on taxes.
Misconception to avoid while buying group life insurance:
People also fall prey to several rumours and myths present in the insurance market while they want to make most out of their decision to invest in group life insurance schemes.
People have this misconception that life insurance benefit is only meant for big corporations. However, one shouldn’t be carried away by this not-so-correct fact and should go ahead to invest in a life insurance scheme because small business owners get equally benefitted from this feature.
Again, try to invest in whole life insurance schemes because even if your decision of purchasing term insurance is not entirely wrong, it’s still not completely correct at the same time. Opting for a whole life insurance policy is a better decision, as it is good at providing short as well as long term liquidity, tax-savings and other benefits as compared to term insurance. All these features included together can easily outweigh the cost involved with buying group life insurance.
In the end, adding the element of life insurance to its wellness programs is one of the most effective ways organizations can attract and retain their best employees. It is easy to administer and affordable to buy at the same time. Employees will be automatically covered in the program, thus staying happy and satisfied in the workplace.