In today’s day and age, businesses can no longer ignore the need to keep their employees motivated, and on top of their productivity. Nowadays, organizations are taking various initiatives to ensure that the employees enjoy their work and feel satisfied with their workplace and job responsibilities. Large companies routinely use medical and life insurance as tools to attract and retain employees. These insurances offer features that individual coverages cannot match.
In most cases, Micro, Small, and Medium Enterprises (MSME) believe that they are not eligible to provide such benefits to their employees. However, several insurers allow group covers for as low as five people. So, regardless of the size of an organization, MSMEs should actively evaluate employee benefits such as Group Term Insurance.
Why Group Term Insurance?
As the name suggests, a group term insurance offer life coverage to a group of people under a single policy. It provides financial security to the employee’s dependents in case of his/her demise.
It is beneficial to both the employee and the employer. Here’s how:
Group insurance policies are not as expensive as individual insurance policies. This is because a large number of insured under one policy allows the insurer to club together various kinds of expenses such as administration, operation, and renewal.
Employers get tax benefits on group term insurance plans which can help them reduce their tax liabilities.
The premium is directly deductible from the employee’s salary; there is no chance of missing the premium payment. Depending on the organization’s needs, the employer can choose monthly, quarterly, half-yearly, and annual premium payment mode as per their convenience.
A group term life insurance offers universal coverage to the policyholders. The nominee is entitled to receive the payout in India, even if the insured dies in a foreign land.
Providing your employees with group term insurance renders a component of confidence and a sense of security among them that even if they face a medical emergency or an untimely demise, it will be taken care of at a low cost. Motivation is the key to a productive employee.
More importantly, group insurance policies are an indispensable part of the employee benefits packages that offer financial benefits to the employees and employers alike, at a minimal cost.
Can MSMEs benefit from Group Term Insurance?
The group bonus schemes are a good boost for the workers who are spending their precious time to bring forward and increase the performance of your company. A group term insurance is an additional attraction which most of the companies are providing to the employees at all levels. This scheme is most popular among the factory workers where they do not have any additional or lifelong income. The provision of such plans will ensure that their family is also protected along with them, and even after their retirement, they can get a certain amount every month.
Being healthy has many advantages, both on-the-job and off. Healthy employees are an asset to every business, whether small or large. These employees will take fewer sick leaves, and they will be more likely to focus on their jobs, visit the doctor for regular checkups, and be open and upfront with their employer about any health problems.
Offering substantial benefits and perks will likely help to form a better bond between employers and employees. A good relationship is one of the ways everyone in a company manages to feel better about themselves and their working environment. Group insurance can play a significant role in building a successful business.
In group term life insurance, a benefit is paid to the employee's dependents if the employee dies for any reason. In small companies, employers have a moral responsibility to take care of their employee's families too.
Group term insurance plans from reputable insurers such as Max Life Insurance provide personalised long-term insurance cover with add-ons such as education allowance, and accidental death so that you can create 360-degree financial security for your employees. Some group insurance policies also provide covers for outstanding loans to a group of borrowers, while some come with critical illness and disability benefits.
So, despite the organization’s size, it is crucial to provide financial security to your employees and ensure their family’s secure future by group term insurance.