Employee benefits to die for
A guide to things you never want(ed) to use
“It’s to die for!” — That’s a seriously strange idiom.
I mean, what could actually be desirable enough that you would choose to stop living — just to experience it momentarily?
That said, this does come close for me…
My mother. My dear, caring, loving, wonderful, perfect, martial-artist mother, has often said — “ it’s not to die for, rather it’s to live for”.
Now, I disagree with the old (but young-looking) lady often enough to be an Olympic sport. But on this one, I completely agree.
So much in life is dependant on the way we chose to view it.
Traditionally, life insurance companies have viewed their products from the perspective of death. Which in fairness makes sense.
But — that leads to product features, marketing and a customer relationship that focuses on death. For example, the “features” become:
- Our product has a better terminal illness benefit than yours
- Our funeral benefit pays out quicker than yours
Don’t get me wrong, these are super important. But they are reflective of the industry’s focus (perhaps obsession) with death.
In their marketing, it is even more pronounced. You end up with fear-based selling — almost shaming people into buying life cover.
The consequence of this is that group risk products (life insurance, income protection & critical illness), don’t actually make great employee benefits.
Companies provide employee benefits for many reasons, the two main ones are:
- They care about their staff and want to give them something meaningful.
- ROI, great benefits attract, retain and get more from staff.
Great employee benefits need both. They are win/win — employees get something meaningful and at the same time the company’s overall performance improves.
Traditional group risk products definitely meet the first criteria, but not the second.
Employees, especially the younger ones, don’t value life insurance. They cannot see or feel the value of being protected alone — it is just too esoteric.
But there is another way!
There is a very big clue in the name: life insurance as to the “other way”. Have you guessed it? (one more hint, it’s not the word insurance)
Life — let’s focus on everything that happens before death, ultimately there is more to life than waiting to die (even for a life insurance company).
There are loads of reasons this makes sense for an insurer to do (a blog for another day).
But it makes even more sense from an employee benefit perspective. Here’s why:
As mentioned, group risk products are valuable benefits — unfortunately, they are not valued by staff. By changing the viewpoint of these products, they can contribute to both the employees’ and company’s wellbeing — becoming valuable and valued every day!
Group Life Insurance (AKA Death in Service)
What is it?
Group Life Insurance is an insurance benefit that will pay out to your employees’ beneficiaries if they die while covered. The benefit is often directly linked to an employee’s salary.
Old view: A tick box exercise to protect employees.
New view: A cost-effective way to promote wellbeing & inspire people to live healthier and longer lives.
The benefit is clear, employees feel valued because their employer is helping them to live better lives today.
It doesn’t take much imagination to see that if your employees are thriving, so will your business.
Group Income Protection (AKA Group Sick Pay)
What is it?
Income protection will pay out monthly to an employer if an employee is unable to work due to ill health, for the purpose of providing a salary replacement for the employee during that time.
Old view: A way to mitigate the cost of an internal sick pay policy or helping employees manage financially during a long term illness.
New view: The above + a way to proactively help people avoid long term illnesses.
So, prevention isn’t everything. Everyone needs support at different times. The key here is to make sure people have access to proactive support services, for example:
- Easy access to medical professionals;
- Life coaching;
- Early rehabilitation to get back to work, etc…
Group Critical Illness
What is it?
Critical illness will pay out if an employee, their child or their partner (if covered) suffer one of the illnesses defined in the policy. (Sorry for the insurance-speak, I don’t want to be sued.)
Old view: an expensive benefit often bought for older & more senior members of staff.
New view: realising that 70% of all death is due to lifestyle-related disease — and there are simple changes we can make to seriously reduce this.
There is a global pandemic (not Coronavirus) of lifestyle-related disease. The British Heart Foundation estimated that the cost to the UK economy from Cardiovascular disease (including premature death, disability and informal costs) is estimated to be £19 billion each year!
Encouraging staff to move more, drink less, stop smoking and watch their diet can cut the risk dramatically.
What was I hoping to achieve with this blog, so a few things:
- To get you to smile at least once
- To get you to rethink how the “boring” and undervalued benefits you may already be providing can unlock so much more!
- Spread the love of wellbeing and always trying to look at things from a positive perspective
How does one end a blog like this, a mixture of so many things serious and frivolous? Obviously Chuck Norris again…
