Everybody needs an income. Losing it during a period of sickness can cause serious worries for employees and their families, particularly when finances are already tight.
Of course, employers can simply choose to keep paying a proportion of pre-disability earnings. It can make good sense though to insure the risk under a group income protection (GIP) policy. This can help to stabilise claims' costs, making budgeting more certain. In addition, GIP policies include a number of services such as early intervention to avoid potential claims and rehabilitation support to enable people to begin to return to work.
Communicating the benefits well is very important. Failing to do so can reduce the impact of benefit spend. A good set of benefits can be the difference between a valued employee remaining loyal or going elsewhere. Good financial advisers will be able to help with benefit selection and communication here.
I am going to select Life Assurance. Life Assurance is a benefit that is normally offered widely across a workforce and forms an important part of Financial Wellbeing. It can sometimes be undervalued by employees as they will personally never receive it. However, it doesn’t matter who you are or what your personal circumstances are, there is usually someone you care about. Having peace of mind that those you care about will be helped financially in the event of your death is a big reassurance.
I believe this is a benefit that usually has the greatest reach and has the potential to have a very meaningful impact in the event of anything happening to an employee. I would urge employees to look at its value and to ensure they have completed their Expression of Wish forms to help guide the Life Assurance Trustees in understanding their preferred beneficiaries. Employees should also remember to update these forms if their circumstances change.