Johannesburg - Life cover provides financial protection to employees and their families, and its importance cannot be overemphasised in guaranteeing security for loved ones in the unfortunate event of death, says Andile Keta, Executive for Corporate Services at Rand Mutual Assurance. In the article below, Keta highlights just how important Group Life Cover is, and how it is key in safeguarding employee financial security and wellbeing.

Covid-19 has shown us just how possible loss of life is and can affect anyone at any time. So, what happens when one’s life is not covered for death? Never mind the funeral arrangements, which can be a separate cover, their family is left with no financial security to help them move forward. It is worse when the deceased is a breadwinner and was responsible for essentials like education and living expenses. 

Now, while it is the responsibility of the employee to ensure that they are covered, many employers offer life cover as a benefit to their staff. For small business employers, offering cover might give them a competitive advantage to help source and retain good talent.  

Not only does it benefit you as an employer, it assists your employees too. Group Life Cover pays a lump sum in the event of an employee’s death, giving their dependents the financial support, they need at this crucial time. This lump sum death benefit pays out either a multiple of the member’s annual salary or a flat rand amount. 

Group Life Cover provides employers with the moral responsibility towards their employees should something happen to them. It ensures predictability, certainty, and ultimately gives peace of mind.

There are variations to Group Life Cover which may include a combination of life, disability, and funeral cover to suit the needs of your employees and your budget. 

The first step to assisting your employees with cover is sourcing a reliable administrator of life and disability claims, and enquiring about the options that will suit your business and your employees. 

Once this process is complete and you have signed up, it is important to ensure that your employees take full advantage of these benefits that are available to them by following these three steps:

1. Make sure they understand their benefits. Often times, employees just sign on the dotted lines without fully understanding what they have committed to. Regularly educate your employees on the benefits available to them, why they are valuable and how they can take advantage of them.
2. Spotlight specific benefits. Once in a while, send out communications to your team highlighting different benefits, this will serve as a reminder about what they have available to them and how they can take advantage of them.
3. Get feedback. Don’t let your investment go to waste. Ask your employees for feedback on the benefits available to them. Ask them which benefits they like or don’t like and get an idea of which they would like to have, your administrator might be able to give you tailored benefits to suit you and your employees’ needs.