Company life insurance has always been important, but with the coronavirus pandemic, increasing energy and cost of living prices, the UK leaving the EU, and a whole other load of uncertainty, it’s more valuable now than ever before. Here are some of the reasons why company life insurance is so important and why you should consider it in your business.
You can protect your business partners
If you’re a business owner or a co-owner, you can get a life insurance policy that will make your business the beneficiary in the event of your death, meaning that your company will have the necessary funds to carry on without you, should you pass away. As the cost-of-living increases, along with other factors that create uncertainty around money, it’s important that you do what you can to protect those around you, which leads me to my next point.
You won’t leave your loved ones in debt
Although it’s not something you particularly want to think about, death comes with a financial burden upon loved ones. With company life insurance that burden is significantly reduced and allows your loved ones to grieve without worrying about funeral costs or other debts.
Having a sufficient life insurance policy also ensures that your family will have the financial means to carry on after you’ve passed. Any daily expenses or potential future costs will be covered, so your family won’t have to join the millions of families without life insurance who are struggling to pay for their living expenses once their primary household earner has passed away.
There are many additional benefits that come with company life insurance
Company life insurance isn’t just something to help your loved ones after you’ve passed. Did you know that you can benefit from life insurance while you’re still here? Depending on the type of insurance you’re covered by you could have access to a whole host of additional extras. Many policies offer counselling services, fitness and nutrition programmes, private and digital GP appointments and many more extras.
Group policies are less likely to be underwritten than individual insurance policies
A group life insurance policy is particularly useful if you’re older or are suffering from poor health and are finding that you’re either unable to get cover or have to pay excessive amounts.
When you apply for individual insurance, you’ll have to go through an underwriting process which basically decides how much your policy will cost based on your general health and lifestyle. The higher your risk, the more expensive your cover is likely to be and the harder it’ll be for you to get cover altogether. Thankfully, insurers are much less likely to bother underwriting each employee individually, meaning that you can benefit from free cover from your employer.
Overall, it is clear that, due to the current circumstances in the UK, company life insurance is more valuable now than ever before. Now that you know why company life insurance is valuable, there’s no excuse for you not to set one up in your company. So, it’s time to start researching to find the perfect solution to add to your employee benefits package.