Posted on: 15 October 2021
Guest article from LifeSearch
Our partners over at LifeSearch have given us an insight into how business owners can protect their employees if there ever comes a time when they can no longer support themselves.
Find out more about offering employee protection cover as a benefit by reading this guest post from LifeSearch.
Death in the ‘work family’
As a business owner, you’ll no doubt be completely accustomed to the many and often unpredictable ups and downs of life in business – but have you ever had to deal with a death in the work family?
Like anything tragic but unfortunately possible, it’s one of those things that you might not want to have to go through the process of being prepared for – but you may come to regret that if and when the inevitable happens.
You have a business, people are employed within it. They might die, or become too unwell to work. There are several different forms of protection that can help your employees or their family, with cover that will either replace their income or pay out a lump sum.
Having these employee benefits in a business provides peace of mind for the hard-working people on your payroll, plus their nearest and dearest, not to mention you as well. Knowing that your people are protected against the worst can be a blessing for everyone involved. Here’s who can enquire about the different types of protection LifeSearch can offer, and how they work.
Who can take out employee benefits cover?
With so many different options available to suit your business, you’ll want to take a look at the protection that’s on offer if you are a limited company, partnership or partnership LLP.
Naturally, there is a cost associated, which can vary depending on the cover required and the costs associated with payouts. However, any business that does opt to offer these benefits to their staff will receive tax breaks – and you may find that the premiums are reassuringly reasonable for the potential benefits that could be achieved.
What types of protection are available?
Long ago, somebody coined the popular phrase: “it does exactly what it says on the tin”. Well, this also applies to the simple sounding, but all-encompassing protection that comes with life cover. Providing the ultimate peace of mind to employees and their loved ones, a lump sum pay out can help out with anything the bereaved need it for, from mortgage payments to household bills and supporting other debt.
Unfortunately, life cover can only pay out upon death – but your employee’s dependants can at least be assured that there will be financial support there during a difficult time. In the less final, but by no means less serious event of critical illness, employees who are diagnosed with a range of life-changing conditions can be supported financially whilst being treated. Critical illness cover protects for a wide range of serious conditions and different policies do cover different illnesses – so be sure to chat with one of our advisors to find the cover that suits you best. This product can pay out a completely tax-free lump sum or form of income to your employees when they need it the most.
And finally, income replacement insurance kicks in when an accident or illness prevents a member of staff from working. This comes in two forms: income replacement with either a limited benefit amount or continuous benefit amount. Essentially, this comes down to timescale – an agreed period for which somebody will receive a portion of their earnings whilst unable to work, or an ongoing spell that ends with them returning to work or passing away.
Again, the benefits of having this policy in place are clear for employees and employers alike. Hopefully, there will never be a need for your staff to make a claim on any of these policies, but the potential positive impact of an employee benefits policy for your workers far outweighs the pain of not having one in place if the worst happens.
LifeSearch was established in 1998, and since then, has grown into the UK’s largest life insurance broker. LifeSearch specialises in life insurance, critical illness cover, income protection and other forms of life cover.
LifeSearch has won numerous awards, and is recommended by MoneySuperMarket, Bank of Scotland, Halifax, Lloyds Bank and Compare the Market.
If you are looking for advice or quotes for life insurance, visit LifeSearch's website or give them a call on 0203 764 0074.
Premierline is a business insurance broker, we work with some of the UK most well-known insurance companies to provide you with competitive business insurance quotes. Our insurance experts can assess your business’ needs and find a range of quotes suited to you.
If you’d like to find out more information about our partnership with LifeSearch or if you would like to review your business insurance requirements, get in touch to speak to one of our insurance advisors today.
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