5 things to consider when planning employee insurance

What do you need to consider when planning your employee insurance?


When it comes to employee benefits, a flexible benefits scheme is probably the most desired feature. Also known as cafeteria benefits, staff are given a flexible benefits budget and can choose their own benefits such as holiday reimbursements for example.

But what about insurance coverage?

From the employee's perspective, an organisation that provides a comprehensive benefits package that includes insurance conveys credibility as well as an indication of care towards their welfare.

From the standpoint of the company, providing group insurance for employees is part of being a sound and stable organisation, and at the same time makes good business sense to guard against unforeseen work accidents or injury. 
 

What is Group Life Insurance?

Most companies use Group Life Insurance which is like a regular life insurance plan. It provides a lump sum benefit in the event of Total and Permanent Disability (TPD), or death.

This lump sum payout can be used to take care of funeral expenses, existing debts and even provide some form of income for the employee's family. Or in the case of TPD, the proceeds from this Group Life Insurance can provide added financial security as your employee recovers and adjusts to a new life situation.

To put together a comprehensive benefits structure for your employees, here are things to consider when it comes to the insurance portion: 
 

1. Decide who gets covered

Depending on your budget, you may decide that you would take out coverage for all full-time employees, seeing as group insurance typically follows terms that reflect economies of scale. 
 

2. Upsize your employees' cover

There are other types of insurance that you can offer besides group-term life such as Group Critical Illness. Did you know that 33 people are diagnosed with cancer every day in Singapore1?

With Singaporeans getting afflicted with critical illnesses such as stroke, cancer and heart disease, many might find themselves without the means to pay for their long-term medical treatments.

With Group Critical Illness, your employee can then focus on his recovery and the opportunity to return to work full time without worrying that his savings would get depleted.

Some insurers, such as Aviva, offer riders such as Group Critical Illness which provides critical illness coverage, in addition to their Group Term Life plans so that employers can offer extra protection for their employees.

Another type of insurance to consider would be Group Personal Accident. This coverage pays benefits to the employee's beneficiary if death or disablement occurs due to an accident. 
 

3. Let your employees decide on what kind of coverage they want

Some companies allow their employees to upgrade the Sum Assured or type of hospitalisation coverage they prefer. The employee can either top up out-of-pocket for the extra coverage or, if there is a points component to their benefits scheme, they can use part of it to pay for or top up the difference. 
 

4. Give your employees another reason to stick with you

Whether you are a small to medium-sized enterprise (SME) owner or a human resources practitioner at a multi-national corporation (MNC), the reality today is that attractive salaries are no longer enough if you want the best and brightest in your organisation.

Employees are now thinking further ahead, and looking closely at the employee benefits and healthcare options available to them.

Group insurance has, for this reason, become one of the significant drivers for retaining talent in your company. This article tells you how Group insurance can help you retain top talent in your company. 
 

5. Convenience is key

When it comes to planning employee insurance, there are many providers in the market and you may sometimes be spoilt for choice. But one thing to remember is convenience.

Pick an insurance provider that offers wide access to a panel of GPs and specialists. For example, Aviva's Group Insurance offers a network of over 500 GPs and Specialists for your employees to choose from.

In this Digital Age, there are many ways to make the claims process less painful in your employee's time of need. Gone are the days where employees would need to make a copy of their claims receipts and wait for weeks to find out if their claims have been approved.

Aviva, for example, launched an app called the Aviva ClaimConnect which lets you submit your employee insurance claims, scan/attach receipts and monitor every step of the claims process on-the-go.

After all, a business is only as good as its employees so it's wise to consider protecting your strongest assets by investing in group insurance.

Like most people, your employees worry about their future, including what would happen in the event of death, illness, or disability and whether their future income and well-being are protected.

And you can help put their minds at ease by investing in a group insurance protection plan from a trusted insurer.

Want to find out more about group insurance?

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