One of the most common types of insurance, which most often complements VHI. Unfortunately, the vast majority of this product is not marked by special attention from domestic employers and is most often used in the sector of international companies, as a fulfillment of corporate standards.
The product is good in that it has a rather low level of administration, copes well with the task of motivating staff, more often performing a social function than a direct motivational one. We call this “second level” motivation – when the privilege is not aimed at the employee himself, but at protecting him, as a cell of society, as a breadwinner in the family. Those. in essence, this is protection of the insured employee’s relatives from financial shocks upon the occurrence of an insurance event.
To strengthen the motivational policy of a company acquiring life insurance for its employees, the main task of the HR manager (or broker, as an assistant to the HR manager) is to correctly convey information to employees regarding the essence of the service itself, its basic conditions, and mechanisms of its operation.
And since insurance risks are not always and not entirely pleasant to perceive (we are talking about insurance in case of injury, disability or death of the insured person), a certain proportion of delicacy should be shown when presenting the meaning of this insurance to employees. Only with complete clarity for all parties will an employee be able to realize the degree of his security and appreciate the real significance of such a corporate bonus.
As a debunking of the myth widespread on the market regarding the purchase of this product in the same insurance market as VHI, we note that life insurance products are much better to buy in life insurance companies: they are more interesting in terms of insurance conditions (their flexibility and the number of possible options) , they are more profitable in price policy, their capabilities are much wider in terms of insurance amounts and coverage.
When choosing an insurance company for this type of insurance, it is necessary to take into account a number of parameters, such as the experience of the insurance company in this direction, the main reinsurers, the participation of insurance companies in international pools, the existence of obligatory insurance contracts, etc. Dealing with all the necessary parameters is much simpler, involving an insurance broker in this work.