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HomeFinance and AccountingBusiness Insurance5 reasons to set up company life insurance for your employees.

5 reasons to set up company life insurance for your employees.

When it comes to employee benefits, we might think of cash bonuses and employee assistance programmes. Though it might sound less exciting in theory, compared to a holiday bonus at least, providing your employees with company life insurance can have many benefits.

What is company life insurance?

Company life insurance, also referred to in some cases as business life insurance, is a policy taken out by a business owner to protect the business, employees, and their family financially if the employee dies.

Not only this, but company life insurance policies can have multiple additional benefits, such as mental health support, private healthcare, and much more. So, here are 5 reasons why you should set up company life insurance for your employees.

Provide support for your employees, colleagues, and their families

Though employees might have a right to have time off in the case of an unfortunate and traumatic event such as a bereavement, there is little to no help in the way of supporting employees through difficult times in their lives.

However, company life insurance can provide support for your employees or colleagues and their families as they go through rough patches in life. This can include anything from money troubles, work and family responsibilities, plus the death of a loved one.

Make your company more competitive in the job market

When 75% of people within working age (16 to 64) are employed, it can be difficult to find a way to set yourself apart from other businesses when it comes to recruiting new employees.

If you are looking to attract the best people to your company, it can be beneficial to offer a non-financial benefits package as part of the employment, on top of their salary. One of these benefits, of course, can be company life insurance.

Reduce time lost due to sickness and absences

In 2020 alone, 118.6 million working days were lost because of sickness or injury in the UK, which equates to 3.6 days per worker. However, one way in which you can reduce this is by offering company life insurance.

This is because life insurance will give your employees access to better healthcare opportunities, which will speed up diagnosis and treatment in the event of an illness.

Covers treatment not available on the NHS

To further the previous point, the improvement in health care which can be provided is because life insurance will grant your employees access to treatment which is not available on the NHS.

This includes things such as 24/7 online GP consultations, experimental treatments, as well as alternative therapies and even some medications.

Keep your employees happy in their jobs

And last but not least, offering your employees company life insurance shows that you as an employer value their financial, physical, and mental health and wellbeing. By emphasising how much they mean to the company in such a way, you are much more likely to retain your workers.

The added bonus of this is that a happy employee is likely to work more efficiently and productively. After all, as the old saying goes, the sign of a good boss is a happy office.

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