The biggest thing we have learnt from the coronavirus crisis is that no matter how much you earn, whether you’re employed, self-employed, have a mortgage to pay or rent your home, having a financial safety net to fall back on is vital when times are hard.
Within a very short time of UK lockdown people were crying out for financial support. Record numbers applied for Universal Credit and the government stepped in with their furlough scheme, paying 80% of salaries. People were desperate to cover their basic outgoings: mortgage, rent, food and bills. It was clear to see how quickly financial problems can occur. According to a report created by Legal & General, the average household is just 14 days away from the breadline. *
Only a quarter of staff believe their employer is genuinely concerned about them.
As well as the financial impact, the pandemic has had an enormous effect upon our working lives and for many who are now working from home, the blurring of work-life boundaries as well as an unpredictable future has placed a strain on the balance between work and home life and the relationship between employers and employees.
A survey of 2,000 employees undertaken by Aviva took a snapshot of working life pre-Covid-19 in February 2020 and again during Covid in August. It showed the pandemic has prompted – or forced – many people to re-examine their values, goals, and behaviours, and thrown many businesses into disarray. 43% of employees described their wellbeing as being less than good and only a quarter of those surveyed believed their employer was genuinely concerned about them.
The financial impact of Covid, furlough and news of business closures has heightened anxiety and stress with many employees worried about the future. A quarter of employees felt they were unprepared financially for unexpected events in the future.
Tax-efficient life cover could make your staff feel more appreciated
Employers could think about how they can adapt to offer greater support to their staff, make them feel more secure and appreciated. Introducing comprehensive financial protection such as Relevant Life insurance could be seen as a step in the right direction.
Relevant Life insurance is an individual death in service policy that allows an employer to provide tax-efficient life cover for directors and employees.
Life cover will pay out a lump sum to the family if the employee covered dies during the policy term.
Offering perks such as life cover make staff feel more appreciated so they are more likely to stay with the company – but the question also arises whether there is a moral need to address this issue of employee wellbeing.
Offering insurance such as Relevant Life cover to your employees goes some way to giving the support and feeling of worth that employees need to feel appreciated. Business protection isn’t just about protecting your business, it’s also about protecting your people.
It’s important to remember that a Relevant Life Plan will only cover those who take a salary from the business. If you are a sole trader, or a partner, you are not eligible for this type of insurance policy. However, this does not stop you buying regular life insurance out of your own income in the normal way. A Relevant Life Plan policy can be used to cover company directors and those who own their own business, provided it is registered as a company in the UK and they take a PAYE salary from the enterprise.
The pandemic has shown how quickly the unexpected can have a huge impact on our personal and working lives. We’ve put together a free Business Continuity Plan toolkit which provides all the information your business needs to ensure you and your staff are protected, matter how tough it gets.
The Finance Roome provides clients with a variety of business protection products to help you protect your business and your people.
If you’d like to speak to us, call the business protection team at our Cheltenham office today on 01242 226353 or email us: firstname.lastname@example.org to request a call back.
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