High employee turnover is one of the main challenges that threaten a company’s growth and success. More and more companies are now realizing that to keep their employees longer, they have to show that they are invested in their wellbeing. Offering attractive compensation benefits that go beyond salaries is one of the most effective ways you can cultivate your employees’ loyalty as a business owner. Life insurance in particular is among the most favored benefits employers can offer, however, it's also known to be one of the most expensive. If you are currently at a crossroad wondering if your small business can cover the expenses of employee life insurance, you need to read the below. Here are some tips on how you can save money on life insurance.

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Analyze Their  Needs

A lot of times, many companies overpay on life insurance extras that none of their employees actually use. Before you go shopping for life insurance policies, analyze the specific needs of your employees, and understand what options they will benefit from the most. You can even conduct an anonymous survey to collect meaningful data about your employees’ definition of necessary versus bonus features. For example, if most of your employees are single, you don’t need to offer a spouse coverage option. In that case, it’s more cost-efficient to bump up the value of an individual policy. You will get to save money and your employees will appreciate the added benefits.

Opt for Money-Saving Plans

When you start researching insurance policy deals, you will notice that many policies are identified as money-saving. These plans give you the same benefits as a regular plan minus the hefty premiums and corporation taxes. As per insurance experts, you could be saving money with relevant life cover which is a tax-free insurance plan that is significantly cheaper than other similar plans. Besides saving on taxation expenses, relevant life coverage even escapes inheritance tax as the payout is not actually owned by the deceased but is to be passed on to the beneficiaries. However, you need to understand the shortcomings of such plans, for example, the fact that relevant life insurance won’t be available to you if you run a partnership company or are a sole trader. In addition, your employees have to pay out before they reach the age of 75.

Choose Term Insurance Over Whole Life Insurance

Whole life insurance is considered the most expensive type of insurance since it covers the assured for as long as they live. Term insurance, on the other hand, covers the assured for a predetermined period, which can save you a lot of money. Even though whole insurance obviously has more benefits like cash value accumulation, for on-budget employers like yourself, it’s not worth the financial burdens. However, when you start with basic term insurance you can upgrade to whole insurance whenever you choose to. Otherwise, you can save whole life insurance for senior titles or employees who’ve been with your company for more than five years. Not only will this save you a considerable amount of money, but it will also give new employees more reasons to stay with you for longer to get access to a more comprehensive life insurance plan.

Don’t Wait Too Long Before You Invest in Life Insurance

As the average age of your employees’ increases, it’ll become more expensive to offer them life insurance. You can avoid the unnecessary financial burden when you start looking for a suitable plan today. In addition to the financial aspect, you need to consider the lost opportunity cost of not having a proper life insurance policy in place. The inability to attract high calibers when recruiting is one of the biggest challenges that employers face when they don’t have wholesome compensation packages.

Work With an Experienced Protection Specialist

As an employer, you’re not expected to understand the ins and outs of life insurance policies available in the market. Your best bet is to benefit from the services of an experienced protection specialist who can help you find what you’re looking for. Sharing your needs and your budget with a professional will save you a lot of time and money. Insurance policies can sometimes be tricky with the fine print conditions and limiting terms. However, for a professional adviser, it’s easy to compare different plans and summarize the pros and cons of each for you to take your pick.

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Life insurance is not a benefit you can afford to overlook. As your biggest asset, your employees' satisfaction is worth the extra investment. You should use the above tips to help you find the right life plan that can help you become an employer of choice without breaking the bank. When you see the improvement in employee morale and enhanced productivity of your team, you will know you’re on the right track.