Group Life Insurance and Bereavement Support
Life insurance is a type of cover in which your loved ones receive a lump payment in the case of your sudden death. The cost of the coverage varies depending on the chosen scheme and numerous factors such as
- Existing health pre-conditions,
A group life insurance is very similar to a personal one. The main difference is that you, as a business owner, can cover either some or all your employees instead of just yourself. The decision about who should be included in the agreement is entirely up to you. The amount of the benefit can be based on the salary, for example, a multiple from 1x to 12x of the employee’s monthly wage. An alternative is to provide a fixed amount of benefit regardless of the earnings. Some insurance companies allow covering members of staff of any age up to 75. It is also worth mentioning that after employee’s sudden death, the beneficiaries will receive a payment which is tax-free.
What is a “Cost of Dying”?
When speaking about the price of a basic funeral, SunLife estimated this cost to equal £4,078. However, if we consider additional services, for example, hiring a professional to deal with the estate or organising a wake, the total cost of dying may be as high as £8905, according to the same SunLife report. Research indicated that these expenses increase gradually every year and nothing suggests that the trend may reverse in the future.
Death of a close relative brings more financial consequences for a family than just funeral expenses. In August 2018, the average monthly rent in the UK equalled £947 (HomeLet). Annually, it is a cost of £11,364. It may be hard for a surviving partner to afford essential living costs, especially if you have some dependants, for example, children or elderly parents. Life insurance is a benefit which can help to avoid additional stress. As a business owner, you may think that the cover does not add any financial worth to your company. Still, employees who receive benefits, feel more valued and they are more likely to be loyal to your company. Providing support to your staff is beneficial not only from an ethical point of view. It also helps to attract the biggest talents to join your team and may increase employee retention.
Group Life Insurance – a Bereavement Support
Some insurance companies offer more than just a cash payment to a family of an employee who died. Bereavement support is an example of an additional service included in one of the packages. A loss of a beloved person causes a long-term mental strain and surviving partner or children experience unimaginable pain and grief. Bereavement support gives your staff access to bereavement counselling which is a form of assistance during tough times. Also, managers can participate in online training focused on explaining how to deal with grief. After the death of an employee, supervisors should be aware of the emotions felt by other work colleagues. They may also require support and be less efficient at the workplace. By completing the training, your managers would understand how to behave during these special circumstances and provide relevant assistance to the rest of the employees.
Group Life Insurance – Summary
As a business owner, you can provide group life insurance for your staff. It will help their families to overcome financial difficulties in the case of employee’s death. Some packages include mental support and specialised training for the managers. The price of the insurance depends on many factors and for this reason, please, contact one of our advisors to receive more information. We are happy to assist you with any questions you may have about this policy.