Organisations across the world, at least those that have growth ambitions, will always need the best talent they can find and, as a result, need to offer an attractive package. This can include everything from an industry-leading bonus structure to private healthcare and even life insurance policies.
If any components of a competitive package need to be sourced externally, it makes sound economic sense to compare providers and assess the best overall option in terms of price, exclusions and how much the premium will increase year on year. For example, performing a life insurance comparison online is probably as easy as it ever has been, but it’s important not to pick a provider based on price alone.
Key Checklist for Insurance Policies
If the proposed employment package includes any type of insurance, such as health cover or life insurance, the checklist below can be broadly applied to both:
- Coverage and Benefits
This includes how the payout is determined, such as a flat sum or a multiple of the employee’s salary. There should also be add-on options, such as dependent cover at the employee’s own expense. Extra protection may also be available in the event of an illness/accident that leaves the employee unable to work either permanently or for an extended period of time.
- Underwriting
Group policies may not require a medical examination; however, care should be taken to read the small print in detail to ensure any relevant information is provided regarding pre-existing conditions. It is also important to clarify any insurer’s maximum payout without proving insurability.
- Policy Mobility
This means that if an employee leaves the company, can they have the policy amended/updated so they can continue with the same provider but outside of the group insurance?
- Premium Stability
Will the business need to refinance or re-agree a new group policy as the age of the workforce gets higher? Although price rises for a group policy are usually assessed over a period of 5-10 years, it makes sense to factor this into any long-term financial planning.
- Insurance Provider Reliability
The provider’s financial stability is something that needs utmost due diligence, and the fact is that long-established, bigger providers are generally a safer bet than local providers, who may not have the longevity or the amount of positive feedback needed to make an informed decision on whether to engage them for group insurance purposes.
Final Thoughts
Organisations with real ambition will pull out all the stops to get the right people working for their company, and an attractive employment package is a good way to get suitably qualified people interested. An attractive health or life insurance policy is not just a perk; it lifts a great deal of stress from the employee’s shoulders and allows them to fully focus on their role in pushing the organisation forward.
Although health and life insurance comparison tools are useful, it is vital that the insurance company is approached directly and spoken to personally to proceed with confidence before purchasing any group policy.
