As an employer, providing a comprehensive benefits package is crucial for attracting and retaining top talent. And one of the most valuable benefits you can offer your employees is life insurance. Life insurance provides financial protection for loved ones in the event of a family member’s passing, and offering this benefit to your team means your employees and their families can have peace of mind should the unexpected occur. However, navigating the world of life insurance benefits can be complex. Here are some key things employers need to know about offering life insurance to their employees.Why Life Insurance is importantIn the event of a staff member's death, Group Life Insurance also known as 'death in service', can help cover funeral costs, outstanding debts, and provide income replacement for their dependents. In other words, it provides a vital lifeline to people at the most difficult times.There are two main types of life insurance cover that employers can offer: Group Life Insurance is a policy purchased by the employer that covers all eligible employees. The premiums are typically paid by the employer, and the cover amount is often a multiple of the employee’s salary. This type of life insurance employee benefit is straightforward to administer and provides a baseline level of protection for all employees.Voluntary Life Insurance, on the other hand, is coverage that employees can opt to purchase themselves, usually at discounted group rates. The premiums for Voluntary Life Insurance are paid by the employee through payroll deductions.Group Life Insurance is typically the more attractive option of the two when it comes to employees. So if you're looking to hire the best people, minimise turnover and keep morale high, this life insurance employee benefit is the one to go for.For this reason, most companies see life insurance as an essential component of a well-rounded employee benefits package, which may also include Group Health Insurance, Group Dental Insurance, Income Protection and Critical Illness Cover.3 Reasons Why Offering Life Insurance Benefits is a No-brainer1) Life insurance can help employers attract and retain talentSimply knowing life insurance is there can be a huge weight off employees' minds — and that means life insurance can go a long way in boosting their morale and loyalty to the firm.According to Microsoft’s Work Trend Index Report, 52% of Gen Z and Millennials said they were likely to consider changing employers (up 3% on the previous year). In addition, a study conducted by YuLife and Hymans Robertson found that 53% of employees said they would always choose an employer that positively contributed to their wellbeing, even if it meant earning less money.It makes sense, then, for employers to offer a life insurance employee benefit to demonstrate that they have their employees’ best interests at heart. Plus, it helps employers stand out from the competition when it comes to recruitment, positioning them as caring and thoughtful for anyone considering a change of scenery.2) Life insurance can reduce absenteeism and staff turnoverThe Microsoft report also notes that 53% of employees are more likely to prioritise health and wellbeing over work than before the pandemic — and as 93% of those we surveyed believe that their employer has an obligation to protect their wellbeing at work, it’s clear that the businesses that recognise their role in actively promoting a healthy work/life balance will be rewarded.The good news is, Group Life Insurance can help them do just that, because it’s rarely a standalone benefit.YuLife’s Group Life Insurance includes access to mental health and financial experts, and bereavement support through our Employee Assistance Programme. This includes Doctor on Demand services, including 24/7 virtual GP consultations and prescriptions for members and their families — along with access to the YuLife employee app, which encourages employees to engage in wellness challenges and rewards them for completing healthy activities like walking, meditating and cycling.This focus on preventative health is a win-win for all parties, because it reduces the likelihood of claims, helps to keep the cost of premiums down, and boosts the health of your workforce — all while helping them to improve productivity, reduce absence and raise morale across the board.3) Life insurance benefits are tax efficientThe above benefits are naturally employee-centric, but when you’re making the case for Group Life Insurance, you’ll also need to convince the person (or people) holding the purse strings.So, here’s a great ice breaker: Group Life Insurance is tax efficient. It’s not considered a benefit in kind, so your client won’t have any income tax to pay on the life insurance cover for their employees. And the premiums they pay are usually eligible for Corporation Tax relief.Communicating Life Insurance Benefits to EmployeesClear communication is key when it comes to life insurance benefits. All too often, companies pay out for Group Life Insurance but don't get the rewards such as low staff turnover and high morale… because employees don't even know these benefits are available to them! Here’s what they need to know:Should the worst happen, the lump sum paid out usually falls outside the employee’s estate, meaning it’s free from any Inheritance Tax liability.Employees aren’t usually required to undergo medical examinations or underwriting, making company life insurance more attractive than potentially expensive individual insurance products.And if your client registers with YuLife, their employees will receive access to our app, which offers daily rewards for completing wellness and health activities, including walking, mindfulness, and fitness classes. For every mile walked or two minutes of mindfulness spent, they’ll earn our in-app currency, YuCoin, which can be used to redeem vouchers from big-name brands like M&S, Amazon, Nike, and ASOS, or can even be donated to charity and environmental projects. The app also makes it easy for employees to understand their cover details, including beneficiary information.What’s the ROI of Group Life Insurance?As we’ve highlighted above, introducing meaningful and engaging benefits and wellness resources, such as Group Life Insurance, can lead to a reduction in absenteeism and staff turnover, and an increase in productivity, all of which can deliver a significant return on investment (ROI).A study by Forrester analysed several businesses that were using YuLife’s all-in-one employee wellbeing app and found that, after three years, our proactive approach had driven a 181% ROI vs traditional group insurance. Culture Shift is a Manchester-based tech-for-good organisation, which has created software to enable witnesses or victims of harassment, bullying or discrimination to report their experience, and access support and resources.For co-founder and CEO Gemma McCall, it was vital that the firm’s internal culture aligned to what it was promoting externally — while offering a positive edge when it came to recruitment. “As a startup, you can't necessarily pay the highest salaries,” she explains. And when budgets are tight, an attractive employee benefits package can make all the difference.“If you have an organisation with real purpose at its core, and you walk the walk in terms of how you look after people, they may be willing to take a slight salary sacrifice in order to have those things,” Gemma adds. “I think death in service and health insurance are the two biggest value benefits from the package we offer.” But an effective wellbeing programme has to do more than offer a safety net, it must engage and inspire people to make positive lifestyle changes — and reward them for doing so. By making its life insurance employee benefit engaging and informative, YuLife’s app helps employees take advantage of the valuable cover you provide. That motivation is paying off at Culture Shift, with strong engagement stats (89% YuLife app downloads; 100% monthly users) and incredible feedback: Culture Shift was named a Great Place To Work with 100% of employees claiming the workplace is “fair and equitable”.Reach out to get a quote for Group Life Insurance with YuLife.