There’s more to working relationships than just professionalism. A strong sense of friendship and personal bonding happens between the seniors and the subordinates. Business owners, landlords, and employers should have a plan for dealing with tragic events that may befall their workers. For example, financially supporting the deceased employee’s family is always a kind gesture. With business life insurance, the bereaved family will feel comforted emotionally and financially.
Life insurance can be used by the self-employed, particularly relevant life insurance and key person life insurance, which can both be classed as tax-deductible business expenses. It is important to understand how this type of coverage works so you know what it covers and what it doesn’t cover before making any decisions about purchasing one of these policies for yourself or your business. For more information, please contact us today – or read on to find out more!
The basics of business life insurance
If a staff member passes on while working under you, companies life insurance offers a tax-free lump sum to their family. Whether they die while at work or on leave, they are still covered by the insurance plan.
The policy requires your organisation to pay premiums. Most often, this compensation is a multiple of the employee’s salary. This can be two to four times their earnings; however, there’s a possibility of receiving a benefit of up to 15 to 25 times as well.
Life insurance benefits for employees
Employees value business life insurance since it’s more convenient and affordable than personal life cover. On the other hand, you’ll enjoy a cost-sharing benefit by getting group life insurance for your personnel.
Recent numbers show that a very low number of people in the UK have taken personal life covers mainly to protect their mortgage, this could be in part due to the cost of the policies. Your employees will appreciate it more if you give them extra financial security that won’t cost them a fortune. Business policies have significant tax savings when compared to like for life personal plan.
Attracting high-quality employees and boosting retention
Life assurance is a supplementary employee benefits package that is beneficial to both small and large corporations. For starters, it shows that your business cares for the workforce’s well-being and recognises their needs beyond the working environment.
Employee retention is now more critical than ever, considering the rate at which people leave jobs in these unprecedented times. If you ensure your employees are covered financially, you’ll immediately become a popular employer, allowing you to stand out from competitors during the hiring process.
You can boost your business environment instantly after making your teams feel more appreciated. In essence, business insurance is an excellent way to attract and retain high-level workers to your entity.
Here’s what it can do for your enterprise and consequently improve productivity:
• Encourages enthusiasm among workers
• Minimises employee turnover rate due to recruitment costs
• Lowers absenteeism thanks to the added health insurance plan
• Increases employee retention rate for more experienced employees with family responsibilities
Covering for lost revenue
Your business can suffer a major setback after losing a prominent employee. You can use key person insurance to protect your company against such an unexpected death. It will compensate your company for the estimated revenue loss and administration costs required to get an appropriate replacement.
Introducing vital programmes
Your employees could use assistance programmes focusing on holistic health during challenging times. Protecting employees with a life cover is a great way to introduce free life programmes such as:
• Counselling
• Fitness and nutrition plans
• Virtual private medical appointments
• Physiotherapy programmes
More manageable than individual policies
Employer-provided life insurance is easier to manage than individual plans. Because it is classified as a business expense, it’s not subjected to a P11D implication.
Having multiple workers under one umbrella also helps to save costs. In a group plan, you will be the sole determiner of the kind of plan that best suits your employees, yet you’ll share the premium costs with them.
Beyond financial assistance
Financial frustrations are some of the biggest reasons employees get distracted, affecting their concentration and output at work. Their lack of focus may cause tremendous loss every year. The more secure your workforce feels, the more at ease you will be.
Undoubtedly, an employee’s life insurance may cover funeral and other death-related costs well. However, the bereaved family gets more than monetary support. They are entitled to confidential bereavement and probate helplines, which guides family members in navigating complex legal, tax, and financial issues that follow the death of a loved one.
Beyond financial assistance
Financial frustrations are some of the biggest reasons employees get distracted, affecting their concentration and output at work. Their lack of focus may cause tremendous loss every year. The more secure your workforce feels, the more at ease you will be.
Undoubtedly, an employee’s life insurance may cover funeral and other death-related costs well. However, the bereaved family gets more than monetary support. They are entitled to confidential bereavement and probate helplines, which guides family members in navigating complex legal, tax, and financial issues that follow the death of a loved one.
Complementing a pension plan
A life insurance policy for an employee is the ideal accompaniment to a retirement account. It guarantees financial security for a bereaved family where the deceased’s pension is meagre. For some pension plans, surviving spouses or dependent children will receive payments for a few years, while others will pay them for a lifetime.
Are you looking for the best employee insurance cover for your staff? Life can throw all sorts of surprises, but business life insurance can provide much-needed peace of mind to keep delivering the best to your community. Our friendly advisers will help you choose a more advantageous plan for your company.
