Investor's Psychology

Top 5 Benefits to Check in Your Employee Insurance Package

Created on 16 Oct 2023

Wraps up in 6 Min

Read by 2.2k people

Updated on 17 Feb 2024

Benefits to Check in Your Employee Insurance Package

When applying for a job, we often think of how much the annual package should be and what the location of the office is. But you know what's more important? It's the benefits a company offers to its employees.    

Employers provide certain perks to their employees, which help them retain and attract employees. Among the usual benefits like complimentary refreshments, Work-from-Home days, Paid Time Off (PTO), etc., many companies also provide insurance packages.

Insurance and a bulletproof jacket are similar in many regards. After all, life in the 21st century is like being in the midst of a gunfight; you never know what might happen. 😅  

So, it's crucial to have the cover of this jacket, especially for the employed population. That's where this article comes in. We're going to take a look at the top benefits an employee insurance package should cover.

To explain the importance of all these must-have benefits in your employee insurance package, I am going to need you to run those horses in your brains. So, it's time to clear the cobwebs in your mind and make space for more important stuff.

Benefits Essential in Employee Insurance Package

Without further ado, let's list the top five benefits in an employee's insurance package. ⬇️

Top 5 benefits to include in your employee insurance package

1. Health Insurance

Imagine you are late for work and are running to catch that last train. In a hurry, you forgot to keep an eye on traffic rules (please never do that  🙏) and bam! You are hit by a vehicle.

You're rushed to the hospital, where the doctors inform you that you need surgery. Now, there can be two scenarios here.

Scenario 1: You have health insurance coverage, and it covers the cost of your treatment, so you can focus on getting better.
Scenario 2: You don't have health insurance coverage. You're on the hook for the entire cost of your treatment, which could be thousands or lakhs of Rupees. You may have to spend your savings or take on debt to pay your bills.

To avoid such a drastic turn in your life, look for an employment opportunity that provides health insurance to its workforce or ask your employer to update your benefits package.

Most companies provide a health insurance policy starting from ₹2 lakh to ₹5 lakh coverage for employees. This amount would be of assistance to take care of urgent pre and post-hospitalisation expenses.

The best part about getting health insurance coverage from your employer? You get access to quality healthcare services, which could be challenging to pay for on your own.

Thus, even if you have a personal insurance policy, make sure to inquire from your employer about this perk. Having more coverage is always better!

An additional tip: Companies offering policies can also be rejected, just like personal policies. Since most companies don’t take personal information about the employee’s health or checkups before including them in the group policies, details like liquor intake or past health history could be skipped.

So, in case your insurance claim gets rejected, then don't worry! Give the article, Health Insurance Claim Rejected? Don't Worry and Do This a read and find answers to all your queries.

2. Life Insurance

We work hard to fulfil our wants and needs and build a bright future for our family. We make diverse plans for the next one, five, or even ten years. But death, like an uncontrollable beast, always makes unexpected entrances and steals lives. While we cannot control death, we can prepare for the worst-case scenario.

Life insurance is vital for employees because their families rely on them for financial support. Plus, it also gives all the breadwinners peace of mind for their family’s future in case of their sudden demise.

Most employers purchase Group Life Insurance policies, providing their employees’ families a safety net in case of their death.

The Indian Government has made it mandatory for companies to provide group life insurance policies to all employees after the COVID-19 pandemic.

3. Travel Insurance (Leave Travel Allowance)

Do you also wonder what it would be like if you could be a superhero for one day? The overwhelming power, agility, and ability to fly or, better, the ability to stop time⌚ would be a great addition to the resume, right? 

Alas! Life is not a fairyland, but that does not mean you can't have everything you want. You just have to make a tiny adjustment. 🤏 So, instead of being the superhero, how about hiring one?

Confused? Well, I am talking about travel insurance. Like a reliable superhero, a travel insurance policy will protect you from the unexpected, like lost luggage, flight cancellations, and medical emergencies and let you enjoy your trip to the fullest.

Plus, when you go on trips to a foreign land, say Europe. Suppose you get sick to the point that it leads to a sudden visit to the hospital. Without travel insurance, you could be on the hook for thousands of dollars in medical expenses.

But with travel insurance, your policy would cover most of the medical expenses. You might still have to pay a deductible and copays, but you wouldn't have to worry about squandering your savings away.

Ensuring your employee benefits package includes a travel insurance cover is especially important for employees who have to take multiple work trips year-round.

You can also take advantage of tax-exemption options like Leave Travel Allowance and Travel Insurance coverage by your employers. To know how to avail of this option and who is eligible, read the article Is Leave Travel Allowance Worth Claiming?

4. Critical Illness Insurance & Accident Insurance

If you compare the life expectancy and health issues of people from the 20th and 21st centuries, you will find a huge gap. Lifestyles, eating habits, hospital visits and health problems of our great-grandfathers and grandfathers are worlds apart.

Nowadays, we often hear young adults losing their lives and health from critical ailments like cancer or heart disease. Accidents are also more of a common occurrence in the present time.

If any of the above-mentioned mishaps happens with an employed person, then they would be forced to take time off work to recover. On top of that, piled-up medical bills would feel like rubbing salt in a wound.

Critical illness insurance comes in handy to protect yourself and the people near you from such unforeseen situations. Critical illness insurance is crucial for employees because it can help them protect their finances and families in the event of a life-threatening disease.
To get an insight on the best policies out there, give the article Accident Insurance Policy a read.

5. Annuities

An annuity is like a parachute for your retirement that can help you land softly on your feet when you retire. It is an official contract between an insurance company and an insurer to provide regular payments periodically (monthly or yearly) as part of retirement benefits.

Annuities can be a great way to ensure a secure financial future in retirement. The regular stream of capital allows one to live a more comfortable and fulfilling life. It's like receiving a salary without working a minute.
Ahh, yes, our hidden desire!

Various annuity options are available, allowing employees to choose the ones that best meet their needs. So, look for annuity options that suit your retirement plans so you don't miss out on a golden old age.

For an in-depth understanding of how essential annuity plans are, check out the article: How Annuity Helps to Plan Better Retirement?

The Bottom Line

Now that you are familiar with the importance of these insurance benefits go ahead and inquire about them from your employer. If your current company doesn’t provide one of them, talk to HR. You can also share this article and help the organisation devise a better employment insurance package.

If you are looking for a new job prospect, then make sure to check these in the Job Description. Remember, you must never compromise with your safety.

Stay Healthy, Stay Happy!

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Preeti Gupta

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A book-lover who adores everything fictional, Preeti has undertaken the life mission of tasting every flavour available in the pantry. A science student with a Master's in Mass Communication, she now wishes to conquer the Finance world as a writer. With the power invested by the randomly chosen music, she is here to make Finance fun for you.

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