5 Reasons to Set Up Company Life Insurance for Your Employees

Company Life Insurance: Top 5 Reasons To Offer It

If you’re weighing up whether to add Company Life Insurance to your employee benefits package, we’ve pulled together the top reasons for doing so.

1. Offers Financial Security

A quarter of UK employees told us they want their employer to offer insurance to protect their families. Group Life Insurance offers peace of mind to your people, knowing that their loved ones will be taken care of if the worst happens.

Cost is often the biggest barrier to someone taking out their own personal policy, so having this covered through their employment is a literal lifeline for some. It’s an especially-valued benefit if your employee is the main earner in their household.

While you hope to never use it, family members will still be able to pay the rent, mortgage, or other essential bills if your employee passes away. It’s also one of the most offered and most sought-after benefits, according to our 2024 Employee Benefits Survey.

Providing insurance shows your employees that you value their wellbeing. It’s a tangible way to demonstrate that you care about more than just their output at work – relieving them of the need to purchase personal plans (which can be out-of-budget for many).

Nadeem Farid
Head of Health & Wellbeing Benefits

2. Attracts Top Talent

Our 2024 Employee Benefits Survey found that 71% of employees would move jobs for better pay and benefits, with 51% ready to leave in the next 12 months. 41% also said that a good benefits package is the most important factor when looking for a new employer.

With this in mind, having a solid employee benefits package can ensure your organisation is as attractive as possible to those seeking a new opportunity. And it’s not just for new employees, your current workforce will also feel more engaged, helping to bring down churn and boost retention.

Work Life Insurance forms the cornerstone of the best employee benefits packages, showcasing your business as one that cares about employees and their families.

3. Includes Valuable Free Services

Alongside the core financial security that Company Life Insurance offers, there are a number of additional benefits that come with these policies – often at no additional cost.

These services are designed to help employees manage their health and happiness on a regular basis, avoiding the need to claim on their insurance policy. Some of the most common free services included with Group Life Insurance policies include:

• Employee Assistance Programmes
• Virtual GP services
• Second medical opinion services
• Counselling services and helplines
• Probate support.

These services can be accessed by employees at any time and some are even available to their families, providing true value for money.

4. Cost-Efficient Benefit

When it comes to employee benefits, Death in Service is probably one of the most affordable, cost-effective insurance products you could offer.

Death in Service policies are written into trust with the employer listed as trustee, which means that the payout falls outside of the person’s estate and isn’t affected by inheritance tax.

It’s also not considered a Benefit In Kind, which means there’s no income tax to pay on your employees’ cover. And when set up properly, it’s eligible for corporation tax relief.

5. No Need For Medical Underwriting (Usually)

Individual insurance policies require applicants to undergo an underwriting process, which determines the cost of the policy based on the health and lifestyle of the individual. If someone is deemed a “greater risk” then they’ll pay more for a policy, or even be denied cover completely.

With a company policy, this process isn’t typically applied. Most insurers won’t seek to underwrite each individual’s medical history unless a specific employee’s cover exceeds the free cover limit.

This means that employees who’d otherwise pay hefty premiums (or be refused cover) can access this much-needed financial security through their employment with you. It could be a lifeline to employees of a certain age or who have health conditions.

Not sure where to start? Talking to an expert consultant is the first step. We have close relationships with the top insurers, and can negotiate the best policy terms for your business.

Read more about how to set up Company Life Insurance, or get in touch by calling 02084327333 or emailing help@drewberry.co.uk.

Danielle Bines
Consultant, Employee Benefits

Compare Company Life Insurance Quotes And Get Expert Advice

A carefully considered benefits package shows employees that you see them as individuals, not just worker bees. By acknowledging their broader life responsibilities and personal challenges, you’re supporting their overall wellbeing and showing that their role in the company is valued beyond just their daily tasks.

But setting up and maintaining a competitive employee benefits package requires a decent bit of admin, which quickly becomes time consuming. We do the heavy lifting for you, giving you more time to focus on what matters.

We live and breathe employee benefits, doing this day in-day out for businesses just like yours. Looking at the big picture, we get to know your unique workforce and benchmark your offering against competitors. We also have access to products you wouldn’t get on your own, so give us a call on 02084327333 or email help@drewberry.co.uk.

Why Speak to Us?

We started Drewberry™ because we were tired of being treated like a number.

We all deserve a first class service when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

• We are award winning 🏆 independent insurance advisers who work with all the leading UK insurers
• You’ll speak to a dedicated expert from start to finish
• We are very proud of the 3955 and growing independent client reviews rating us at 4.92 / 5
• We are authorised and regulated by the Financial Conduct Authority. You can find us on the financial services register here 🧐
• Claims support when you need it most.