Life Insurance
What is life insurance?
Life insurance is a type of cover that pays out money to your loved ones if you die. The idea behind it is to give your family financial security and support in the event of your death — it’s a way to protect against a loss of income.
There are different types of Life Insurance policies, and the amount of coverage, premiums, and details can vary based on your individual needs.
There are two main types of life insurance:
- Term Life Insurance — a policy that gives coverage for a set number of years. If you pass away during that time, your loved ones will receive the death benefit. Term life policies don’t have any cash value.
- Permanent Life Insurance — this is a lifelong policy. Your loved ones will receive the death benefit whenever you pass away. This type of policy often builds up extra money over time (AKA cash value) which can be used for other expenses.
Who should buy Life Insurance?
If you're looking to give your loved ones peace of mind and financial security, life insurance is a good option. This type of cover is especially useful to people with dependents, like children, spouses, or elderly parents.
If something were to happen to you unexpectedly, your family would have to deal with a lot of difficult expenses. That's where life insurance comes in — it provides a safety net to help cover things like daily expenses, debt, funeral care, and other costs that come with losing someone.
So, if you want to make sure your family is protected & taken care of, a life insurance policy is definitely a smart choice.
Life insurance as an employee benefit
Life insurance can be offered as a group benefit to employees as part of their benefits package. Offering life insurance as a benefit gives employees an affordable way to get life insurance cover and provides peace of mind for them & their loved ones in the event of their death.
Life insurance benefits involve the company paying a premium, and in return, employees are given the option to enrol in the policy. In most cases the company will offer a certain level of cover (usually a percentage of the employee's salary) and the employee can then choose to add extra cover if needed.
What are the benefits of Life Insurance to employees?
Aside from the obvious financial security and peace of mind that comes with receiving life insurance, there are some other positives that life insurance offers from an employee point of view.
One of the pros of life insurance as an employee benefit is that the premium is often much lower than an individual policy. This is because the cost is spread out among employees, making it way more affordable for employees!
Another advantage to life insurance as a benefit is that enrolling through a work scheme is often a fairly straight-forward process. This makes it easier for employees to get cover, sometimes even if they have pre-existing health conditions.
Why should employers offer life insurance?
If you're an employer, there are plenty of reasons why you might want to offer life insurance to your employees.
- Offering life insurance can make your company a more attractive place to work, and can help you retain your current employees. It shows that you care about their well-being and the security of their families.
- Your employees will feel secure and valued, which can lead to improved motivation levels and increased job satisfaction.
- Offering life insurance as a group benefit can save you and your employees money instead of purchasing individual policies. And it's not just cost-effective, it's also tax-friendly — so both you and your team can get some tax benefits.
- Giving your employees peace of mind helps to support a culture that prioritises a healthy work-life balance, which can help them focus on their work and personal lives.
So, offering life insurance as part of your benefits package is a win-win for both you and your team!