BENEFITS OF EMPLOYER-OFFERED LIFE INSURANCE

It’s easy. One advantage of enrolling in employer-sponsored group life insurance is the convenience factor. Most often policies guarantee coverage for all employees with very few, if any, obstacles. This is beneficial for older employees or employees with poor health who may have trouble finding affordable options through individual policies.

It’s cheap. A group life insurance scheme is very cheap so the cost implication for the company is minimal. It is doubtful if any other cheaper method of providing for eventualities exists.

It’s a good recruitment incentive. The employer-sponsored group life insurance scheme serves as a very good incentive for recruiting and retaining great staff. An employee who has job offers from company A and company B with the same employment packages would rather opt for company A that has a group life insurance scheme, and dump company B that doesn’t.

It promotes staff loyalty. A group life scheme gives the employees peace of mind as they would be able to concentrate on their job, knowing full well that they are duly covered by an insurance scheme. This will, of course, promote staff loyalty and commitment.

It promotes a cordial employer/employee relationship. If an organization doesn’t do what its peers in the market are doing, tendency is for agitations to come from its employees. An employer also needs to consider how unhappy the employees would be if reasonable benefits are not paid to the dependants of a colleague who died in service.

It assists in better budgeting. All that the employer requires is the insurance company’s invoice for the required premium which would be included in the organization’s budget. In addition, the employer buys peace of mind as there would no longer be that disturbing worry about what may happen if an employee dies in service.

It enhances image. By providing financial compensation to employee’s dependants, the employer is indirectly enhancing its own image. Everyone would see the company as a good organization and would be willing to work for or do business with it. 

It offers family protection. The primary purpose of life insurance is to provide financial relief for dependants in the event of a premature death. If an employee dies while in service, the life insurance benefits are paid to the dependants.

It comes with tax advantages. The employer enjoys tax relief on the premium paid for the employees’ group life insurance scheme.

It promotes corporate social responsibility. When an organization has a group life insurance scheme in place for its employees, it is actually contributing to human welfare. When one thinks of what could happen where dependants don’t have anything to rely on after the passing away of their breadwinner, it would become easier to comprehend the effect of a simple act of instituting a group life scheme for employees. A company that provides life insurance cover for its staff is actually fulfilling a corporate social responsibility.