The success of any business hinges on many internal and external factors. The performance of its employees is one of the most important factors among them and depends largely on the work culture of the company, job stability and financial security, career progression opportunities, recognition, perks provided and other benefits. A group insurance policy is one of the best ways to motivate your employees and provide financial security for their families.
A group insurance policy is an insurance policy that covers a large number of people, irrespective of their age, gender and work grade. Premiums for group insurance policies are significantly lower as compared to premiums of insurance policies for individuals. Most group insurance policies for employees, typically offer cover for those between the age group of 18-60.
Besides, there are no pre-requisites like medical screening up to a specific cover limit. Different types of group insurance policies include Group Life Insurance, Group Health Insurance, Group Personal Accident Insurance and Group Travel Insurance.
Here’s how you can benefit from a group insurance policy as an employer:
Boosts employee retention
The financial security offered by a group life insurance policy boosts employee retention as employees are assured that the financial needs of their families will be taken care of through the proceeds received from the policy in case of any uncertain event.
Acts as a morale booster for employees
A group insurance policy acts as a morale booster for employees as it shows how much you care for them as an employer. When employees are happy and satisfied, it ultimately reflects in the work performance too.
Avail tax benefits
The premiums paid for group insurance policies are eligible for tax deduction under relevant sections of the Indian Income Tax Act, as it is termed as a business expense for the company. As an employer, you can show this expense in your profit and loss account.
Affordability and convenience
As a large number of employees can be covered under a single policy it offers convenience in terms of managing the premium payment as well as affordability as the premium rates are cost-effective.
Key takeaways
In a post-pandemic world, there is more awareness about the importance of having adequate insurance for financial protection against unforeseen circumstances. By purchasing a group insurance policy for your employees, you can not only boost the morale of your employees but also ensure financial security for their family members.
Additionally, a group insurance policy also helps you to save tax. So overall it is a win-win situation for you as well as your employees. However, before purchasing one, it is highly advisable to compare the group insurance plans of different insurance companies so that you choose the one that’s best for your business and its employees.
by, Abhishek Misra, CEO Bonanza Insurance Broker