People understand that it is important to protect their loved ones from tragic events. However, very few cover themselves owing to lack of awareness or access to professional advice.
A corporate life insurance plan is often the only financial protection an employee may have, though they may not necessarily understand or appreciate its value.
Educating your employees on the importance of life insurance will not only create a greater appreciation for the employee benefits package you have put in place but will also increase their loyalty to your company, through the provision of a strong financial foundation.
- Enhance employee financial education
Most of your employees may have never considered life insurance. Nor might they have thought about what would happen to their loved ones in the event of a catastrophic accident or illness. Explaining carefully the importance of corporate life insurance will give your employees the peace of mind to focus on their work and prevent them from worrying about their personal finances in case of such events. This is the first step in educating your staff about financial literacy and it will help to improve their financial education. Fewer worries mean higher staff productivity which will benefit your company.
- Promote your employee benefits package
When educating employees about corporate life insurance, be sure to enforce the particulars of the coverage. Provide information about the different type of coverage, the premiums, the benefits, enrolment procedure for dependents if possible, as well as any restrictions that they would need to know. Also, ensure you raise awareness about the advantages of corporate life insurance which include:
- Premium rates through group policy are much lower than an individual policy.
- Simple application procedure: under the group plan, a medical check-up may not be required. It allows coverage even in the event of medical conditions.
- Improve satisfaction and retention
Employee benefits play an important role in retention. Offering a competitive benefits package, in addition to competitive pay, reduces the likelihood of an employee finding the grass greener elsewhere. It is however really important that your employees understand the full value of the package that has been put in place by the company. It is only when they understand the full value that you can get the maximum benefit for your organization. It is an important part of building trust and loyalty, promoting transparency and employee wellness.
If you want to set up an employee benefits package or enhance your current plan with group life insurance, please contact Clema Risk Solutions at hello@clema-rs.com
To find out more about our various insurance solutions for SMEs in Hong Kong, please visit our website.
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