Competition for strong professionals makes employers think about more than salary. The benefits package is becoming an important argument when people choose where to work, and life insurance holds a special place in it: it shows that the company cares about its employees and their families.
What a corporate programme includes
- Group life insurance — a payout to the employee’s family if the employee dies from any cause.
- Accident insurance — payouts for injuries, disability and temporary incapacity for work.
- Savings programmes — the employer and the employee build capital together by a certain date, for example retirement.
- Critical illness cover — if the chosen insurers offer this additional risk.
How the company benefits
- Staff retention. Employees value protection that would be hard to obtain on their own on the same terms.
- Appeal to candidates. Insurance in the benefits package sets the company apart from other employers.
- Financial predictability. If misfortune strikes an employee, the company does not have to decide on financial assistance in a hurry: the insurer makes the payout.
- Group terms. For a team, rates and medical underwriting requirements are often softer than for individual policies.
- Tax aspects. Legislation may provide for specific tax treatment of employer contributions — check them with your accountant against the current rules.
How to build the programme
Start with your goals: retaining key specialists, protecting all employees or supporting those who work in higher-risk conditions. Then define the structure: the same sum insured for everyone or a link to salary, separate levels of cover for different staff categories, and the option for employees to insure family members at their own expense.
The next step is to collect offers from several insurers and compare them not only on price but also on the list of risks, exclusions, payout times and quality of service. The easiest way is a tender: insurers submit offers on the same terms, so they are easy to compare.
Common mistakes
- Choosing a programme on the lowest price alone without comparing exclusions.
- Ignoring how headcount will change during the year and not agreeing in advance on how new employees are added.
- Forgetting about renewal: it is better to review the programme every year, taking employee feedback into account.
How to tell employees about the benefit
Even a good programme does not work if nobody knows about it. Explain to employees what the policy covers, how to make a claim and why it is important to name a beneficiary. A short guide and the contact details of a responsible specialist answer most questions.
A Dynasty consultant will help you prepare the programme requirements, run a tender among insurers and choose the best offer for your team.