Do Companies Have To Provide Life Insurance? Do Companies Have To Provide Life Insurance?

Do Companies Have To Provide Life Insurance? Do Companies Have To Provide Life Insurance?

Do Companies Have To Provide Life Insurance? Do Companies Have To Provide Life Insurance?

Do Companies Have To Provide Life Insurance?

KW: Relevant Life Insurance Life insurance, or “death in service benefit” as they used to call it, is one of the most important benefits a company can offer, both for the employee and the company itself. Employees are starting to ask what would happen to their families if their lives were cut short. While accumulating […]

KW: Relevant Life Insurance

Life insurance, or “death in service benefit” as they used to call it, is one of the most important benefits a company can offer, both for the employee and the company itself.

Employees are starting to ask what would happen to their families if their lives were cut short. While accumulating savings to develop a safety net is not possible for most, and personal life insurance may be expensive, life insurance through the employer is a more appealing option for employees.

However, companies need to choose the right coverage that fits their employees’ needs and their company. So, do companies have to pay for life insurance? Let’s dive in to know more.

The Basics Of Business Life Insurance

Life insurance will pay a sum of money to any employee who passed away while employed by a company, either in the form of a lump sum benefit or a steady monthly benefit. The death doesn’t have to happen at the workplace or be related to the company. The lump sum paid to the late employee is usually a multiple of the employee’s earnings. Most companies can pay two to four times the employee’s salary, but in some cases, it could be more, up to fifteen times if possible.

How To Set Up life Insurance

Setting up relevant life insurance for your company requires heavy lifting since it involves comparing quotes on different insurance plans. It’s not as easy as pulling quotes for individual insurance from online calculators because there are no such tools for a group cover and business insurance plans have to be advised by an intermediary.

You’ll have to share staff data with various UK insurers to find the best deal for your company and employees. Furthermore, group life insurance will require a trust. You either set up and administer a company-owned trust or your insurer’s master trust. It can be tricky to decide what’s right for the business.

Importance Of Life Insurance

Personal life insurance is on the low among UK workers, and most of them only use it to cover their mortgage. So, it’s not surprising that employees find it more appealing when their employer provides a little financial security to their loved ones without costing them a penny.

Life insurance is optional to the employer. It might seem like it’s only benefiting an employee, but it’s advantageous to the company too and can be helpful to the company’s business protection in the background. Some of the advantages to the employer for providing insurance to their employees include,

• It helps you attract and retain employees, especially those with families

• It improves morale and engagement among your employees.

• It helps reduce absenteeism since it is often combined with additional benefits such as private GP appointments, health insurance, counseling and physiotherapy sessions, and nutrition or fitness programs.

Other Business Protection Options

We know running a company is not an easy feat as there is often blood, sweat, tears and sleepless nights behind the scenes. So, protecting your business is important. Whilst life insurance mostly protects your employees’ interests, other insurance options can further enhance your business protection. That’s where business protection insurance comes in. Business protection insurance are insurance policies designed for your business. Some of the business protection insurance options include;

1. Shareholder protection insurance.

If a company shareholder passes away, their shares are likely to be transferred to their loved ones. This insurance policy provides the funds for the surviving partners to buy back the deceased shares from their families.

2. Key man insurance.

Often the loss of a key person in a business can harm its financial future. In this case, key man insurance will help your company cope financially should this person, who is important to the success of a business, passes away or gets terminally ill. This money will help cover debts, maintain profits, boost customer confidence, and even help with recruitment costs.

3. Business loan protection.

Acquiring a business loan is a normal process in building a company. In the event of a business owner’s or a key person’s death, business loan protection insurance will provide a safety net to protect the financial security of the business.

Contact WIS Business Protection Today – Relevant Life Insurance Specialists

As a business owner, you want to ensure your employees’ interests are taken care of and your business is well protected. Whether you are looking for relevant life insurance or business protection insurance, you can check out the available policies today at Wis Business Protection. Our experts are more than ready to help you out.

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