Brits paying for unnecessary life cover
More than three million Britons are unaware their employer provides them with life insurance and could be forking out for unnecessary private cover, according to Aon Consulting.
In a survey of 1,300 respondents, 77% said they were not provided with life insurance or did not know if the benefit was offered. Yet, the reality is that almost 40% of working Britons are provided with life assurance through a policy organised by their employer, with this proportion on the increase. Additionally, a significant number of employers offer cover on an uninsured basis.
Paul White, head of risk benefits at Aon Consulting, said: “Employers have long recognised the value of offering life assurance as part of the overall benefits mix to attract and retain the best talent.
“Corporate life assurance rates are currently very competitive, often significantly lower than the rates that can be obtained by an individual. This provides the employer with the opportunity to give and communicate a cost effective, tax-free benefit that employees really want and indeed will often pay for themselves.
“Indeed, many of those employees who are unaware that their employer provides them with life assurance are often re-purchasing the same cover privately at their own expense. As family budgets are becoming more stretched, checking whether life assurance and other benefits are provided by the employer could be one area where over three million Britons could make a substantial saving every year.”