Employee insurance is
So, let us take a look at why employee insurance is so valuable.
What is employee insurance?
Employee insurance is a contract (or contracts) taken out by an employer to give both the business and employees financial security or reimbursement in the event of an accident, illness, or death. Unlike individual life insurance policies, employee insurances protect employees as a group, and the business as a whole.
What are the different types of employee insurance?
There are two main types of employee insurance that businesses need to consider – employee life insurance and employer’s liability insurance.
If an employee is injured or becomes ill on the job, liability insurance protects the business from having to pay compensation and legal costs out of pocket. Thus, employer’s liability insurance covers cost of treatment, loss of income, legal costs, and any other damages that might have occurred.
On the other hand, employee life insurance pays out a lump sum to the loved ones of your employees if they die whilst in your employ. They don’t have to die on the premises to claim the payout – that’s what liability insurance is for – they just have to still be in your employment.
Benefits of offering employee life insurance
- Not just life insurance
Some employee life insurance packages don’t only offer life insurance, but a whole multitude of other employee benefits. Insurers such as YuLife provide life insurance, wellness rewards, vouchers, discounts, cash rewards, 24/7 GP services, and therapists on demand.
- Employee retention
Offering life insurance can help you to keep your existing employees and attract new ones. One survey found that 80% of employees would prefer to have life insurance over a pay rise. Thus, employee life insurance can keep employees happy, and attract more experienced candidates for your job vacancies.
- Reduce sick leave
In the UK, 118.6 million working days are lost due to sickness or injury annually, which averages at 3.6 days per worker. However, life insurance can give you access to free private healthcare and mental health services. This allows employees access to the services they need, whenever they need them, helping them to catch illnesses or injuries early. In turn, this can reduce the amount of time that they will need to take off in order to recover.
How expensive is employee life insurance?
Employee life insurance is calculated using a range of different facts, such as: employees’ ages, employees’ salary, the industry you work in, what level of cover you require, and maximum age that the policy will cover. The size of the business can also affect the price of insurance, as larger businesses can benefit from bulk buying, whereas smaller businesses may have to pay more money per head.
Final Thoughts:
Overall, it is clear that the benefits of employee insurance significantly outweigh the costs of purchasing the cover. With all this in mind, you should now know everything you need to know about why employee insurance is more valuable than ever before.
