Employee Benefit Plans: How to Derive Organizational Success Through Insurance

Posted on Mar, 2021

Any company, big or small, with any type of business, largely depends on their employees to achieve organizational goals and steer them to success. The fundamental formula which companies follow is to consider the employees as the most significant resource. A human resource of such significance must be utilized to their full potential by providing them with an environment that makes them feel safe, valued, and taken care of.

Organizations invest in a comprehensive Employee Benefits Plan to derive maximum productivity and ensure that their employees feel satisfied and pleased.

How do Employee Benefit Insurance Plans work?

Employee Benefit Insurance Plans or Group Insurance Plans offer standardized coverage to a specific group of employees of an organization. The organization analyses their employees’ basic needs and chooses an Employee Benefit Insurance Plan that is most appropriate. Generally, an Employee Benefit Insurance plan offers benefits such as Group Mediclaim Policy, Group Personal Accident Policy, Group Travel Group Policy, Term Life Insurance Policy, Motor Fleet Policy, etc.

Whether your employer is footing partial or total premium or it gets deducted from your CTC, both the cost and value of the Employee Benefit Policy provided by the organization is worth it. In some cases, the policy is made available at a lower premium amount. Along with being a cost-effective option than the traditional policies, it offers greater coverage and flexibility, too. Most organizations permit you to opt-out from the policy and renew it (only in line with IRDA regulations)

What’s in it for the Employees?

Through a comprehensive Employee Benefit insurance policy, the employee can benefit themselves and their family and derive personal and professional protection. An employee can benefit from the policy as it provides:

  • Comprehensive protection:

    Just like a traditional term insurance policy, the employee benefit insurance plan provides comprehensive protection from day one. The policy provides benefits such as personal accidental cover, death benefit etc., without any restrictions on the lock-in period.
  • Health Benefits:

    Such policies bring value-added services. The insurance company or the insurance brokers have tie-ups with different wellness companies that offer annual health checkups. The employee benefit insurance plans ensure that employees’ mental and physical health remains in-tact.
  • Flexibility:

    Although the employers choose the policy features, the employees can customize the policy according to their lifestyle. They can add numerous riders such as accidental death benefit rider, critical illness rider etc., to make the policy suitable.

What’s in it for the Employers?

The employer or the organization’s core reason to invest in an employee benefit insurance plan is to cater to their employees’ personal and professional needs. However, the organization can also avail of the following benefits:

  • Healthy Investment:

    The employee benefit policy covers numerous employees at once, allowing the organization to cater to their employees’ needs. By processing multiple policies under the employee benefit plan’s single umbrella, employers can provide numerous benefits to their employees and ensure a safe working environment.
  • Financial Safety Bucket:

    The employee benefit plan provides an excellent way for the organization to safeguard its employees and cover organizational expenses. If the employee meets an unfortunate event, the organization can ensure that the policy will cover the employee’s costs without them having to cover the expenses.
  • Tax Benefits:

    The best advantage of an employee benefit insurance plan is its ability to save the organization’s tax amount. The employers can avail of tax benefits under section 37 (1) of the Income Tax Act, 1961.

In the era where business competition is at its peak, organizations must do everything to motivate their employees to work passionately towards achieving organizational goals. The employee benefit plan ensures that the employees can get comprehensive protection and peace of mind to work effortlessly, ultimately benefiting the organization. The employees, too, should look to participate in the company’s employee benefit insurance plan as it may allow them to constitute their retirement or pension plans.

PINC Insurance a one-stop solution insurance platform that offers customized group insurance policies for companies. The products offered are the result of a deep analysis of corporate and employee needs. If you are looking to buy the most ideal and comprehensive group insurance policy for your employees, you can start by visiting us at PINC Insurance.