Why is Group Life Insurance a Worthwhile Benefit?

And why should brokers be talking about it with their clients? Here, we explain why group life insurance is no longer a “nice to have” for UK employers.

Yugi the Giraffe - 3 May 2022

Employers and HR leaders are growing acutely aware of the importance of retention, engagement, and morale in their organisations post-pandemic. This is why, as a broker, group life insurance (also known as Death in Service) is the benefit to be talking about with your clients.

The uncertainty caused by COVID has prompted many people to reassess their job satisfaction, the benefits they’re offered, and their work/life balance.

As a result, more and more employees are looking elsewhere in pursuit of health and happiness. But with the right group life insurance package in place, your clients could attract and retain talent and reduce absenteeism — and all without breaking the bank.  

Here, we explore the reasons why group life insurance is such a worthwhile benefit and arm you with the facts and talking points for your clients.

3 reasons why offering life insurance as a benefit is a no-brainer

1) It can help employers attract and retain talent

According to Microsoft’s Annual Work Trend Index Report, 52% of Gen Z and Millennials are likely to consider changing employers this year (up 3%, year-over-year).

With over half the workforce eyeing the exit door, it makes sense for employers to offer a meaningful benefits package to demonstrate that they have their employees’ best interests at heart.

What’s more, it helps them stand out from the competition when it comes to recruitment, positioning them as caring and thoughtful employers for anyone considering a change of scenery.

2) It can reduce absenteeism and staff turnover

Unsurprisingly, after the last few years, the “life” part of the work/life balance equation has received greater focus.

Our research discovered that 42% of employees are more stressed than they were pre-pandemic. Meanwhile, the Microsoft report mentioned above notes that 53% of employees are more likely to prioritise health and wellbeing over work than before the pandemic.

And with 93% of those we surveyed saying their employer has an obligation to protect their wellbeing at work, the employers 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. That’s because it’s rarely a standalone benefit. Take YuLife’s group life insurance offering, for example.

We take a preventative approach to wellbeing, rewarding employees for healthy behaviour (like walking or meditation) while supporting them with a 24/7 employee assistance program that includes life coaching and help with bereavement.

By helping their employees live their best life (in and out of work), employers will reap the benefits of lower staff turnover, fewer absences, and a more motivated and productive workforce.

3) It’s a tax-efficient benefit

The 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.

What are the benefits to the employee?

It’s often not enough to sell group life insurance to your clients — you need to help them sell it to their current and prospective employees. 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.

Want to learn more about how YuLife can help your clients?

Click here to request a callback and discover how we’ve helped businesses of all shapes and sizes offer group life insurance that engages, rewards and protects.

Yugi the Giraffe

Yugi is our YuLife mascot. Like all giraffes they've got a big heart – in fact the biggest heart of all land animals.