A Proactive Approach to Health and Wellness Starts With Great Insurance Coverage
In the past, employers were more focused on reducing healthcare spending. However, studies show that a company’s profitability and productivity plummets when its employees don’t have access to quality healthcare. There’s just one problem: healthcare costs are rising rapidly.
To tackle the ongoing problem of healthcare costs for both the employer and employee, we should take a proactive approach to health and wellness by offering inexpensive alternatives.
What is a Proactive Healthcare Approach?
A proactive approach to healthcare encourages employees to use preventative care to create healthy habits and identify medical issues before they become life-threatening or chronic.
Corporate Wellness App
However, proactive healthcare packages aren’t limited to physical health. It’s now common for large organizations to support an employee’s mental health, emotional well-being, financial well-being, and ergonomic positioning. Some may go further by offering flexible working hours.
How Do Proactive Healthcare Measures Help Organizations?
While some organizations took a proactive or holistic approach before the pandemic, healthcare was mostly seen as a thing you use when you need it. During the pandemic, employers noticed that preventive measures were necessary to combat engagement issues at the source.
A Gallup study found that life evaluations were at their worst since the Great Recession of 2008, where only 46.5% of individuals evaluated their lives as thriving.
The holistic healthcare approach was beneficial during the pandemic because it was difficult for employees to stay productive during the shift. Not only did a proactive initiative help employees adjust, but it reminded them that their employers offer support, which helped boost morale.
Not only that, but wellness programs are more than worth the costs. According to an IFEBP Workplace Wellness Trend Survey Report, leaders who evaluated the return on investment of wellness, despite how hard it is to track, saw a $1 to $4 return for every dollar spent.
Even without these figures, the IFEBP study acknowledges that leaders who support wellness programs consider them highly beneficial, as they help attract and retain top talent.
How Does Life Insurance Coverage Factor In?
General life insurance isn’t always added to benefits packages because of the high upfront costs. While group life insurance coverage can supplement these costs and provide a lot of value to a business, some employers aren’t convinced their employees want insurance.
However, it’s more likely that employees don’t know how to take advantage of these options or don’t know why they’re essential, especially when they’re younger or don’t have a family.
A LIMRA study found that 42% of households would face financial hardships within six months if a wage earner died unexpectedly, while 25% would have a hard time lasting a full month. But most Americans don’t want to think about struggling financially, regardless of their age.
If employees only buy insurance when they need it or start saving for retirement when they’re older, they’ll spend more than they have to. If employers offered financial and retirement education to their employees, they’d instantly understand why life insurance is important.
For example, young people can use life insurance to pay off their debts and lower their premiums when they’re older, while older employees can get a second chance at building their wealth. Regardless of age, life insurance can boost wellness by protecting your retirement.
Why Offer Group Life Insurance in Your Company?
Group life insurance is a basic term plan offered through an employer that protects the policyholder’s family up to $50,000 when the policyholder passes away. Here’s why you need it.
Group Life Insurance is Inexpensive
Despite how essential wellness programs are for a company, employers are wary to invest because of their high costs. This fear isn’t unfounded, as medical bankruptcy is common for organizations. However, medical bankruptcy is much more common for your employees.
Group life insurance can help organizations manage healthcare costs because it’s one of the least expensive benefits you could offer. Since you’re saving on insurance costs, you’ll be able to put more money towards other benefits, like your healthcare plan and mental health plans.
Group Life Insurance Provides Peace of Mind
Providing your employees with a safety net reduces stress, boosts peace of mind, and improves focus on the job. With group life insurance, employees spend less time worrying about what will happen to their families or debts when they pass, which increases productivity on the job.
People who are covered by a reputable life insurance company know that their money will be paid directly to their beneficiaries to cover a wide range of costs, such as:
- Basic living expenses
- Estate taxes
- Funeral expenses
- Household debts
- Child’s education
- Retirement savings
As group life insurance is typically offered as term insurance, it’s only offered for a specific length of time and provides coverage equal to an employee’s yearly salary.
Group Life Insurance Boosts Retention
Employee retention is a key factor in business success. According to Simply Benefits, the hard cost of losing an employee depends on their position. Employers can expect to lose 30% to 400% of a person’s annual salary to replace them, but this cost doesn’t include soft costs.
When you add in low productivity, time spent training, and the consistent costs that come with a high turnover rate, employers can’t afford not to provide group life insurance to their employees.
HR professionals believe that offering more voluntary benefits will retain employees, engage employees, and attract new talent, according to a Core Stream survey. 3 out of 4 employees agree that voluntary benefits also affect their decision to work and stay at a company.