Life Insurance  

Professional services workers receive best life cover

Professional services workers receive best life cover

Employees in the professional services sector receive the highest level of life assurance and income protection benefits, according to new research carried out by Punter Southall health and protection on its risk client database, one of the UK’s leading health and protection advisers.

The research found that average life assurance for those in this sector is £232,000, and this compares to £45,000 for those working in the retail leisure and hotel sectors who receive the least the research found.

The average cost of life assurance for those in the professional sector is £210 a year per person the study found.

Article continues after advert

Punter Southall said that his would appear to be much better value than the cost of the benefit for those in the manufacturing sector.

At £180 it is almost the same price as that for staff in the professional sector, but manufacturing employees only receive £113,000 per annum.

Punter Southall said that those in the manufacturing sector can perhaps take some comfort from the fact that while their life assurance benefits are less than those in professional services occupations, they are still better than for those in the retail, leisure and hotel sectors, who enjoy an average life assurance benefit of £45,000 a year.

According to the Punter Southall Health and Protection research, as well as enjoying the best life assurance benefits those in the professional services sector also receive the best group income protection benefits and they have the highest average salary and typically the richest benefit formulae according to the research.

Punter Southall health and protection consultant Paul White said: “There are several reasons, based on actuarial risk calculations, why the cost of group life assurance for manufacturing employees is relatively expensive compared to their professional services contemporaries.

“One is that manufacturing plants tend to be in areas of the country where life expectancies are somewhat lower, in contrast to areas where professional services employees are more likely to live.

“Secondly, manufacturing jobs are more likely to involve work which may cause health problems, such as musculo-skeletal conditions; and even in some case fatalities through industrial accidents.”

“Not only is GIP less frequently given to those in manufacturing than to those in professional services, it is also rarely provided on a universal or democratic basis, tending to be limited to managers and those in more senior positions.”

“Also, like life assurance, the cost of the benefit is very similar for employees in manufacturing as for those in professional services, despite the fact that those in the latter have far higher average salaries.

“This is again because there are lifestyle and occupational factors with manufacturing workers - the likelihood of an unskilled labourer suffering a long-term disability at any given age could be three or four times greater than a professional employee.”

Punter Southall said that whereas with life assurance the research found that the average benefit and costs for those in retail, leisure and the hotel sectors were the lowest, for GIP the research seems to suggest they are better paid than those in the “other white collar” group.