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Wendy Khumalo | How SMMEs can assist their employees prepare for the future

Wendy Khumalo | How SMMEs can assist their employees prepare for the future
24-04-24 / Sisanda Ndlovu

Wendy Khumalo | How SMMEs can assist their employees prepare for the future

South Africa has between 2.4 million and 3.5 million Small Medium and Micro Enterprises (SMMEs) in operation, which means that as a small business owner, you are not alone. While you may be focused on cash flow, expanding on your goods or service offering, plus getting new customers and keeping the doors open, it can be easy to overlook a key ingredient for the longevity of your business – risk protection for your employees.

Traditionally, being employed in a small business can be looked at as riskier and less rewarding than in a larger organisation and this comes down to job security and the benefits employees of small businesses receive. As a financial services provider that has offered insurance solutions for South Africans for over a century, we are doubling down on the efforts by launching a comprehensive funeral, life cover and occupational disability insurance policy to put the power of financial security and secure(d) employment opportunities in the hands of SMEs.

A Group Protection Plan is a simple insurance cover that can be taken up by the owner of the business, to cover direct employees and their immediate family members (minimum 5) and personalisation is at the core of this product.

What does a Group Protection Plan include:

Life Cover: Up to 2.5 million

By their nature, small businesses have equally small staff disciplines. Protection for one’s life in case of dread disease or death is vital. A life cover policy is meant to help your employee’s beneficiaries maintain their lifestyle and cover key expenses, should the breadwinner pass on or be unable to earn an income.

Funeral Cover: Up to R50 000

The average funeral cost in South Africa is estimated at between R 3000 – R50 000 in 2024. Considering this may be several months' worth of your employees’ salary, funeral cover plays a critical part in managing risk and financial wellness. The cover amount you can select ranges from R5000 to R50 000, which will be paid out when your employee or any family member covered under the policy, passes on. Children under the policy are covered until the age of 21.

Occupational Disability Cover: Up to 2.5 million

Accidents happen. Occupational hazards are a serious concern for most employers, which makes this cover key for peace of mind as an employer. You can customise the amount of cover for your employees that will be paid out as a single lump sum should they be rendered unable to work in your organisation or do duties in a suitable alternative occupation.

In the current economy, an insurance solution that provides cover suited to the needs of the people it services is a must. Focusing on the core areas of cover; life, disability, and funeral, your employees get great benefits and security that rival big corporates in South Africa. On the flip side, this helps you manage your costs and risks to ensure you don’t overstretch your budgets.

By getting group risk insurance for your employees, you showcase to them your commitment to their wellbeing and the value they bring to your business, and in turn, enhance their efforts to its growth and sustainability. Operating a small business is complex, but a Group Protection Plan can make sure your employees are protected, so you can get on with the business of doing business.

*Wendy Khumalo is Head Of Metropolitan Franchise.

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