Why Group Life Cover is so important for Companies in Ireland
Phelan Caswell Insurances Limited
Expert Insurance Solutions, for a changing World
Group life cover, also known as group life insurance, is a policy provided by employers that offers a death benefit to the beneficiaries of an employee who passes away while employed by the company. This benefit not only provides financial security, but is an essential part of a competitive benefits package and is becoming increasingly popular among companies in Ireland.
As a company owner what are the real benefits of Group Life Cover for you? It's widely reported that Ireland and Dublin in particular is home to a very competitive recruitment market meaning that talent is a at a premium and securing it requires not only a competitive salary, but an overall package that sets one company apart from another.
Offering group life cover makes a company more attractive to prospective employees. It shows a commitment to the well-being and financial security of the workforce, setting the company apart from competitors who may not offer such benefits. Studies suggest that the tech workers in particular see such benefits as an indication of a company’s long term commitment to the market and region, and that they are more likely to commit to a company where they see long term opportunities. The idea suggests that employees feel more valued and secure when their employer provides comprehensive benefits. This can lead to increased morale, higher productivity, and stronger loyalty to the company.
In Ireland, premiums paid by employers for group life cover are generally tax-deductible as a business expense. This can often provide a significant financial incentive for companies to offer such benefits.
Group life insurance is typically more cost-effective than individual policies. With the support of an experienced broker, employers can negotiate better rates due to the pooled risk among a larger group of employees. At Phelan Caswell we have over 30 year’s experience in providing and managing Group life insurance policies, this allows us not only negotiate exceptional rates, but also offers companies professional policy administration and management.
While the benefits to companies are transparent, you may be wondering what\s in it for the employees, besides the obvious.
The primary benefit of group life cover is the financial protection it provides to the families of employees. In the event of an employee’s death, their beneficiaries receive a lump sum payment, which can help cover living expenses, debts, and other financial obligations. Unlike individual life insurance policies, group life cover usually does not require medical examinations. This makes it accessible to employees who might otherwise struggle to obtain life insurance due to health issues.
Employees benefit from lower premiums compared to individual policies. This is because the cost is spread across the entire group, reducing the financial burden on individual employees. Enrolment in a group life insurance plan is straightforward and usually handled by the employer. Employees don’t need to worry about the complexities of applying for individual coverage.
Key Features of Group Life Cover in Ireland
The coverage amount under group life policies in Ireland is often calculated as a multiple of the employee’s salary, such as two or four times their annual salary. This ensures that the benefit is substantial enough to provide meaningful support to the employee’s family.
Eligibility for group life cover typically begins once an employee starts working with the company and meets any probationary period requirements. Enrolment is usually automatic, simplifying the process for both employers and employees.
Many group life insurance policies offer additional benefits such as terminal illness cover, which provides a pay-out if the employee is diagnosed with a terminal illness. Some policies also include bereavement counselling and support services for the family.
领英推荐
So how can you Implement Group Life Cover in Your Company
Choosing a Provider
Selecting a reputable insurance provider is crucial. Companies should look for providers with a strong track record, comprehensive coverage options, and competitive pricing. Consulting with an insurance broker can help businesses find the best provider for their needs. At Phelan Caswell our team is lead by Ivan Dunne. Ivan is among the most respected qualified financial and specialist investment advisors in Ireland, with a proven track record of negotiating and manging successful Group policies for companies across Ireland. To contact Ivan and his team call +35316202030.
Customising your Policy
It’s essential that your provider tailor the policy to meet the specific needs of your company and employees. This includes determining the appropriate coverage amounts and any additional benefits to include. They should clearly communicate the details of the group life cover to employees. Ensure they understand the benefits, coverage amounts, and how to designate beneficiaries. This can be done through employee handbooks, informational meetings, webinars and regular reminders.
Ongoing Management
Many insurance providers will set up a group policy and the next communication comes in the form a renewal conversation. It’s vital the your provider regularly reviews and manages the policy to ensure it continues to meet the needs of the business and employees. Update coverage amounts as salaries increase and add new employees to the plan as they join the company. At Phelan Caswell our team conducts on going policy reviews and maintenance to ensure your group cover is up to date. A dedicated team is assigned to your account giving you peace of mind that any questions you have are answered by a qualified member of our team.
Group life cover is a valuable benefit that offers significant advantages for both employers and employees in Ireland. By providing financial security, enhancing employee morale, and offering a cost-effective coverage solution, group life insurance can be a cornerstone of a comprehensive employee benefits package. For companies looking to attract and retain top talent while demonstrating a commitment to their workforce’s well-being, implementing group life cover is a strategic and impactful choice.
If you're interested in exploring the Group Life Cover options available for you and your team, contact us today. At Phelan Caswell, we have the expertise, qualifications and a proven track record in managing Group Life policies for companies of any size.