How Small Businesses in UAE Can Benefit from Group Life Insurance

Introduction

Amidst the fast-paced economic growth and business environment in the UAE, group life insurance is growing popular. Keeping employees under one security umbrella like this is a much-appreciated employee management strategy nowadays. Looking at its potential to increase employee satisfaction, business owners are often embracing it. However, small and medium business owners still get sceptical about it. The reasons probably are restrained budget, lack of workforce, unavailability of systematic process within the organisation, and so on.

A clear understanding of the potential benefits of group life insurance probably can help SMEs to decide on this matter. It may help them to see the perks that are missed by their sight somehow. So, this blog will talk about it. Let’s read how small businesses in the UAE can benefit from group life insurance policies.

Benefits of Obtaining Group Life Insurance for SMEs

Medical benefits like group life insurance coverage create a safe and sound health infrastructure for employees at a reasonable cost. Here are the advantages of obtaining group health insurance plans for small businesses:

Creates a healthy company culture

Regardless of company size or business nature, employees look for a peaceful work environment. Also, workers-friendly company culture is the need of the hour, as this is an era of confident millennials and GenZ. By obtaining a standard group life insurance plan from trusted insurance providers like CoverB, employers can ensure the healthy culture within the company

Attracts and Retains employees

The issue of employee turnover is a serious concern for many start-ups, small and medium businesses. To avoid this situation, small business owners can include group insurance plans with a suitable coverage limit in their employee benefit packages. It keeps existing workers loyal to the company while attracting new talent to join the workforce.

Improves brand reputation

Providing enough life insurance coverages to employees creates good reputation for brands. It impresses employees, clients and all others associated with the business or would like to associate in future. Small businesses can leverage this benefit with the help of a well-suited group life insurance plan for their workers.

Reduces company costs

In a group life insurance plan, the risk taken by the employer is allocated over all employees covered under the insurance plan. Thus, it reduces the liabilities of the employer who is the insurer. Hence, insurance providers offer it at a lower premium rate than other insurance plans like individual insurance plans. So, by securing employees’ lives with a budget-friendly insurance option like group life insurance, companies can save their funds for other essential business uses.

Helps to avoid legal hassles

In case of any workplace accident and no insurance claim facility for affected workers, employers may be sued to the court. Apart from family members of affected employees, third parties can also intervene and the situation can be worse with more legal hassles. Obtaining a well-planned group life insurance plan helps to avoid the issue.

Fulfils compliance requirements

As per UAE Labour Law, an employer should provide standard health insurance coverages to their employees. Failing to comply with this regulation may lead to penalties. Sometimes, violating the regulation repeatedly leads to legal permanent closure notice to the business. And for small businesses, one of the most ideal employee health insurance options is group life insurance policy.

Includes less paperworks and waiting period:

The heavy paperwork that are prerequisites for many life insurance policies, are not needed for group life insurance. Hence, there is no waiting period as such. Once an employee joins the organisation, they become a part of the company-provided group life insurance policy. Moreover, employers do not have to arrange medical examinations for employees in case of group insurance policies.

Final Thoughts

With standard coverage plans, low premium rates, smooth claiming process, and other advantages, group life insurance can be beneficial for both employees and employers. It creates a bond of trust among them, by saving employees and employers from sudden financial burdens due to workplace mishaps.competitive corporate world.

Connect with experts at CoverB today for tailored insurance service for all your needs!