06 August 2019
Would I have a moral obligation to contribute to the funeral costs and offer financial support to the destitute family of the deceased or disabled employee?
If the answer is yes, then the best way to assist staff and protect the business financially is to take out group life, disability and funeral cover for all employees.
Many businesses assume their employees take the necessary steps to insure themselves. When an employee dies these assumptions are tested.
Business owners should try and establish whether their employees have adequate life cover. Tammy Cerf, Human Resource Manager at Zestlife says, “It is worth asking every staff member, but establishing a complete picture will be challenging”. Firstly, this is personal information and employees need to be informed that they are not obliged to disclose the extent of their life cover and consequently some will not. Secondly, employees may feel pressurised to portray themselves as being financially responsible and therefore overstate the existence of cover.
With what is likely to be an inadequate understanding of employee life cover, business owners need to ask a very important question: Would I have a moral obligation to contribute to the funeral costs and offer financial support to the destitute family of a deceased or disabled employee?
Group Cover is a cost-effective insurance solution that is available to all employees without medicals.
It is frequently cheaper than individual life insurance and can be paid in part or in full by the business. It also offers the added benefit of attracting and retaining good staff. Read more here.
Zestlife offers lump sum group life, disability and funeral cover to small and medium size businesses. Lump sum cover amounts can be chosen by the employer as a multiple 1,2,3,4 or 5 times of each employees’ gross annual salary.