In today's competitive business landscape, attracting and retaining top talent is essential for company success.
Offering competitive employee benefits is a key strategy in this endeavour, and one such benefit that can significantly enhance your company's attractiveness as an employer is a group life assurance policy scheme, also known as Death-in-Service.
This article explores the advantages that companies can gain from implementing a group life assurance scheme for their employees.
Financial Security for Employees' Families
A DIS scheme provides employees' families with financial security in the event of their untimely death while employed with your company.
The scheme pays out a lump sum or regular income to the beneficiaries, which can help cover immediate expenses and provide ongoing support.
Attracting and Retaining Talent
Offering a group life assurance scheme is a powerful recruitment and retention tool.
Prospective employees may be more likely to choose a company that provides financial protection for their loved ones. Existing employees are also more likely to stay with a company that demonstrates care and concern for their well-being.
Enhancing Employee Morale
Knowing that their families will be financially protected in the event of the worst provides peace of mind to employees. This can boost morale, reduce stress, and improve overall job satisfaction, leading to a more engaged and productive workforce.
Competitive Advantage
A group life assurance scheme sets your company apart from competitors in the eyes of potential employees. It demonstrates that you prioritise the welfare of your staff and their families, making your company a more attractive place to work.
Tax Efficiency
Group life assurance premiums are often considered a legitimate business expense and are not subject to Income Tax or National Insurance contributions. This tax-efficient benefit provides added value to both employers and employees.
No Medical Underwriting
Group life assurance schemes typically do not require employees to undergo medical underwriting or provide health information. This makes it an accessible benefit for all employees, including those with pre-existing medical conditions.
Flexible Coverage
Companies can tailor group life assurance schemes to suit their budget and the needs of their workforce. This flexibility allows businesses to provide varying levels of coverage to different employee groups.
Aligning with Corporate Social Responsibility (CSR)
Offering a group life assurance scheme aligns with CSR initiatives by demonstrating a commitment to social responsibility and employee welfare. This can enhance your company's reputation in the eyes of customers, investors, and the public.
Ease of Administration
Group life assurance schemes are relatively straightforward to administer, with minimal ongoing administrative burdens for HR departments. Premiums are typically based on the employee's salary, making calculations simple.
Support During Grief
In addition to the financial benefit, group life assurance schemes often offer access to bereavement support services for employees and their families. This can be a valuable resource during a difficult time.
Implementing a group life assurance scheme offers numerous benefits to companies beyond just financial protection. It enhances your company's appeal to current and prospective employees, fosters employee loyalty, and demonstrates a commitment to their well-being.
Furthermore, it provides tax efficiency and aligns with corporate social responsibility, contributing to your company's overall success and reputation
Considering the positive impact on both employees and the business, a group life assurance scheme is a valuable investment in safeguarding your workforce and attracting top talent.
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Life Assurance plans typically have no cash in value at any time and cover will cease at the end of term. If premiums stop, then cover will lapse. You should review the level of cover required on a regular basis to ensure that it keeps in line with your earnings, otherwise, cover may be less than you need. If any relevant information provided, when applying, is not disclosed accurately and honestly, this could result in any cover offered becoming invalid and / or may result in the non-payment of any future claims.