Providing Employee Benefits

Death In Service /Relevant Life Policies

How hard is it to employ the right people, recruit them, train them, develop them and find they suddenly leave for a better job with greater benefits? Have you tried asking what they actually value that would increase their loyalty to you? If they have a partner or children it's likely that they may want to have some sort of life cover.

Death In Service is a simple way to supply some much needed life assurance until an employee leaves or retires. Most schemes are based on a number of times the employee’s salary (4 x salary is common) and as these are group schemes these can normally be put in place without any significant investigation or underwriting. Relevant life policies are tax efficient ways of providing life cover in addition to or where D-I-S is not available.

So what is the best scheme to choose and are you better off picking a provider who can offer other group benefits or should you shop around for individual solutions?

Group Income Protection

The state pays for your staff for a short while if they are off work with an illness but what if one of your loyal employees has a more serious ailment and can’t work for a longer period of time? Can your business financially support someone who isn’t actually working or are you forced to withdraw assistance?

You don’t have to do either as you can take out a group scheme for your employees that will kick in when you really need it to. You can begin by having it pay straight away or defer the payments from starting immediately to self-fund for a few months and keep the costs lower. Is your company the sort whereby an employee could return earlier in an easier role or is it all or nothing?

The choices you make can really make a difference in the costs and benefits you can offer your employees, so it is worth spending some time investigating your options.

Personal Medical Insurance (PMI)

Are you losing time through sickness? Your employees can’t get a doctor’s appointment when they need it and operations take months to come through? It is debilitating for the person and potentially for your company also. Why not have them insured to be treated privately? They could even share the cost of the policy with you if you can’t afford to fund it all.

PMI policies can get your people back to work more quickly, reduce the stress of illness and show how much you care for your staff. But you do need to discern the level of cover, which hospitals should be utilized under your plan, and whether you're offering a single or family solution.

Don’t lose great people. Find out what they value and make that part of their package - show them you are as loyal to them as you hope they will be to you.

Key Fact: Your employees are 5 times as likely to have a serious illness than they are to die before the age of 65 - and every day they are absent from work costs you money.