Employers must ensure that workers value life assurance as a benefit and should review their rates to ensure they are getting the best value cover, according to Aon Consulting
Aon Consulting’s Employee Benefits and Trends Report 2009 found that 95% of companies offer some level of group life assurance to their employees.
Of these organisations, 69% offer cover to all employees, with 25% offering it to some employees, and a further 1% awarding it to employees on a paid basis.
Meanwhile, just over half of employees (54%) said they thought life assurance was not provided to them.
This significant gap could mean that some employees are potentially duplicating their cover by purchasing life insurance that is already provided by their employer, while others have insufficient cover.
Paul White, head of risk benefits at Aon Consulting, said: “This research highlights the communications gap around life assurance and employee benefits in general.
“In the current climate, a significant number of employers have frozen or even reduced salaries, meaning that the benefits they offer assume even greater importance in the overall remuneration package for employees.
“We would urge employers who have not reviewed their rates recently to do so whilst current favourable conditions prevail, and also to ensure employees value this important benefit.”
Click here for more articles on group risk benefits