Done right, life and disability insurance is invaluable. It provides financial protection when a breadwinner can no longer provide financially for themselves or their loved ones. Sadly, life and disability coverage in South Africa is spotty, especially among lower income earners, who are generally massively under-insured.
The simple solution is to get SME employers to provide life and disability cover to their staff as an employee benefit. The potential market for life insurers is huge – according to the Small Business Institute, SMEs employ approximately 47% of the SA workforce. It's also completely unserved – of the close to 2,000 policies Simply has sold to SMEs, only a handful were replacement policies.
And what's more, providing cover for staff is a no-brainer for the SMEs themselves, for several reasons:
Attracting and retaining talent
An employee benefits package makes companies more attractive to new and current employees by showing that the company is invested in their well-being and financial security.
Unlocking employee engagement and productivity
A study by the Society for Human Resource Management found employees who are satisfied with their benefits package are likely to be more engaged in their work and consequently more productive.
Protecting the business
In the event of an unexpected death or disability of a key employee, a life or disability insurance policy can provide a financial safety net for the company, who would be under pressure to help grieving families financially.
Providing financial security to employees and their families
Life and disability insurance coverage can provide financial security for employees and their families in case of a tragedy. The coverage can help pay for medical bills, funeral expenses, and provide ongoing financial support to the employee's family.
Passing on savings and freeing up take home pay
Small businesses can secure affordable group rates for life and disability insurance coverage for their employees, which can be difficult or expensive for them to obtain on their own.
Complying with industry requirements
Some industries or bargaining councils require employers to provide life and disability insurance coverage for their employees. Providing life and disability coverage helps ensure compliance with such requirements and avoid potential legal issues.
In the past, it was difficult for small businesses in South Africa to provide life and disability insurance for their employees. Traditional insurers typically had products designed for large companies and it required a lot of work - and an HR department to maintain. Brokers also did not find it profitable to sell policies to small businesses.
Simply Financial Services makes it easy for SMEs to provide their employees with the Life Cover they deserve - helping solve a real societal need while boosting loyalty and performance in the workplace. It's a smart business investment that can be arranged directly or through a broker, with no paperwork and no hassle.
Because looking after your people isn't just the right thing to do - it's good for your business's longevity too.
Simply Financial Services (Pty) Ltd is a registered financial services provider (FSP 47146). T&Cs online.