When job hunting, it is common for employees to look for an employer that offers the most benefits. This includes paid time off, HMO, retirement and disability benefits, and more.
If you are a business owner, it is not surprising if you want to attract the best talents out there. That said, you might want to consider adding life insurance to your employee benefits.
Here are six primary reasons why:
To help protect their loved ones
According to Pru Life UK Life Insurance Philippines, availing life insurance is one way to protect your loved ones. It is like saving their families from financial burden in case something unprecedented happens to them.
The problem is that not everyone thinks highly of the benefits they can enjoy if they are insured. And some people believe that they cannot afford it.
But some employees are smart enough and know the importance of having life insurance. They just do not know how to get started.
Who knows? You might be the catalyst that they need.
To enhance employee financial wellness
There is no denying that many employees struggle to meet their financial goals. This includes building retirement and college funds and managing their debts.
And while finances usually stress people out, one out of four employees do not have insurance.
On the other hand, adding life insurance to your employee benefit is a holistic way to take care of your people’s well-being. This is one way to show that you support their financial wellness, and doing so can help ease their burden.
To provide peace of mind
An employee who worries too much about providing for their family is less productive. This is where including life insurance to your employee benefits could come in handy.
For one, it gives your workers peace of mind, knowing that their employers help them have financial wellness. That’s because they know that they will not be a burden to their families if something unprecedented happens to them.
And since they do not have to worry about this aspect of their life, they can focus on getting things done. This means that they are productive, which can impact your business’s bottom line.
To attract the best talents
As mentioned earlier, offering life insurance can be a great way to attract the best talents. On the other hand, employees would clamor their way through companies that provide the best benefits.
For one, employee benefits are integral in setting your business apart. Second, potential employees weigh in job offers based on services.
Furthermore, providing life insurance to your employees is excellent to boost your retention rate. Because who would want to leave a company that offers life insurance, right?
To enhance company culture
When you add life insurance to your employee benefit, it gives your people more reason to stay. This can be beneficial for your company’s overall productivity and retention rate.
Why would you need to improve your retention rate?
That’s because the average cost of losing an employee is 33% of his annual salary. And one of the common reasons people leave their job is compensation and benefits.
Any decent employer would rather spend that money on providing employee benefits to someone who already knows the ins and out of your business.
To make your employees feel valued
Besides improving your employee retention rate, offering life insurance is one way to show how much you appreciate your people. And when employees feel valued, they become loyal to you and your company.
This loyalty is expressed through hard work, excellent productivity, and delivering desirable results.
That said, excellent company culture and loyal employees can help boost your business’s revenue.
Providing the Optimal Employee Benefit
We understand if you have qualms about offering life insurance to your employees. But if you think that doing so would cause budget constraint, think again.
There are life insurance providers that offer budget-friendly solutions. Meaning, you can provide insurance coverage to your employees that can suit their needs and your budget.
But what kind of life insurance coverage can you get for your employees? To find what’s best for your employees, here are some factors you should consider:
Which Employees Will Receive the Benefits
Usually, employees provide life insurance benefits to their regular employees. That’s because service providers offer affordable group term life insurance. And doing so allows you to enjoy tax benefits.
You can also offer added insurance coverage to your key employees, like your management team. What’s important is that you follow non-discriminatory requirements.
Type of Insurance Coverage
Depending on your business’s nature, you might want to customize what life insurance you can offer your employees. Here are some examples:
- Accidental Death and Dismemberment (AD&D). It provides benefits to employees and his beneficiaries in case of accidental death or loss of a body portion.
- Business Travel Accident. This is ideal if you have employees who often embark on business travel.
- Split-dollar Life Insurance. This is ideal for critical employees, as the insurance provider will pay the employee’s beneficiaries in case of untimely death. The provider will also return the premiums paid to the employer.
How Much You can Afford
Of course, it is imperative to look for employee life insurance that you can afford. Otherwise, you cannot provide the optimal benefit to your employees.
That said, you will need to look for a trustworthy life insurance provider and discuss how they can help your company.
Andi Croft is a freelance writer whose main interests are topics related to business, technology, and travel. This is brought about by her passion for going around the world, meeting people from all walks of life, and bringing along with her the latest tech to enhance her adventures. @AndiCroft