The loss of income could be devastating to the loved ones that are left behind.
Utility bills, council tax, car loans, school/childcare/university fees, loans/credit cards and day to day living costs are just some of the financial burdens families would have to deal with without the contribution of a household earner.
These bills continue even after a mortgage is paid off, and for people renting, could the roof over loved one’s heads be at threat?
No one wants to think about death but business decision makers will no doubt want to leave their loved ones with more than memories.
With planning they can achieve peace of mind and clarity for them should the worse happen.
Without planning it will be ‘pot luck’.
Group Life Assurance is a valuable employee benefit that businesses can inexpensively provide for their workforce. It pays out a lump sum payment to employees’ family or next of kin, should they die whilst employed, helping relieve the money worries at a very difficult time.
Benefits for businesses
But what advantages will the business receive as this will be a corporate spend?
When we surveyed 2,500 businesses, a range of reasons were given as to why it was thought to be a good idea to provide this cover for their employees.
* 33 per cent of businesses said it was an attractive benefit for employees.
* 24 per cent offer this benefit to protect or support their employees.
* 20 per cent say it fits with their caring company culture.
* 18 per cent use Group Life Assurance as a recruitment or retention tool.
A large percentage of employers admit to not knowing much about Group Life Assurance and many think it would be costly and take time to implement.
Neither of these perceptions are correct and, more importantly, the value it offers can be easily missed.
Perceptions can be deceiving, so we want to help you look again at Group Life Assurance for your corporate clients and the potential misconceptions they may have.
It’s too expensive. 42 per cent of businesses said that they can’t afford Group Life Assurance.
Around nine in ten (91%) of employers thought that group life would cost more than 1% of salaries, with 9% assuming the cost would be more than 5% of salaries.
Benefits can start at 0.1% of salary depending on the scheme design and workforce make up.
You can cover all employees including yourself for as little as £4 a month with our Simply Class Group Life Assurance and cover is usually allowable as a business expense against corporation tax reducing costs further.
It’s too much hassle. 21% of employer’s said they don’t have the time or resource to administer this benefit for their business.