How can company life insurance benefit your loved ones?

When looking for a job, company life insurance may not be the first thing you look for. However, in the long run it can end up being one of the most important benefits of your job.

What is company life insurance?

Company life insurance is life insurance that covers every employee in an organisation. If someone dies while employed by the company, whether it’s related to their work or otherwise, the policy will pay out a lump sum to that employee’s loved ones. This will often be a multiple of the employee’s salary, often two to four times, although this can go higher.

How can it benefit your loved ones?

  Company life insurance can be an attractive proposition to potential employees. This is particularly true in today’s world, where the COVID-19 pandemic coupled with the increasing cost-of-living has left more people wondering how their loved ones would be cared for should they die prematurely.

Working for a company with a group life insurance policy ensures that your loved ones will be looked after should the worst happen. Many workers in the UK don’t have any personal life insurance, with many instead relying on their savings to protect their loved ones should they die. With company life insurance, you’ll be covered when you start working for your employer, without the financial pressure that comes with a personal policy.

Company life insurance can also take pre-existing conditions into account, which may not be the case with a personal policy.

As well as the main benefit of paying out to your loved ones in the event of your death, company life insurance can also provide additional benefits. These will vary between different businesses, but can range from health and wellbeing programmes, GP appointments, counselling and therapy resources, physiotherapy sessions to advice on nutrition and fitness.

Many company life insurance providers can also provide bereavement services that will help your loved ones through a difficult time as well as help with funeral costs should the worst happen.

While company life insurance can provide numerous benefits, there are potential drawbacks that you should also consider. If you change jobs or are laid off, you could potentially lose your employer-provided insurance. It could also be the case that the coverage isn’t enough to support your loved ones.

While these issues may not always be a problem for you, it’s worth taking a closer look at your employer’s group insurance policy to make sure that you and your loved ones are getting the best protection. The company life insurance may give you everything you need, but you could also supplement this with your own personal policy for peace of mind.

Ultimately, company life insurance can provide a range of benefits for your loved ones. If you’re employed by a company with this policy, you can be assured that your loved ones will be financially and emotionally supported should the worst happen.

While it is always worth taking a closer look at the policy to ensure it gives you everything you need, it can give you and your loved ones peace of mind.

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