Employee Income Replacement Benefits
While we might love our job we can’t work forever. When our health deteriorates and interferes with our productivity before the age of 65 we call the interruption disability. When it happens at age 65 or later we call that retirement. Some employees have sufficient savings to stop working and retire early, while their still healthy. The ultimate interruption is premature death.
- Establish a policy that deals with the financial implications of an employee's death, disability and retirement.
- Attract and retain the best staff.
- Reduce stress and improve productivity.
- Feeling of moral obligation or paternalistic paradigm.
- Attendance management.
- Fraudulent claims.
- Restrictive policy wording.
- Cost-of-living erodes benefits.
- Employee dissatisfied with claim payment.
- Confidential medical information.
Employees have a one-in-four chance of becoming disabled at least once during their career. Without adequate coverage, an employee depletes savings and becomes dependent on society. With excellent coverage, an employee’s dignity remains intact and they receive support during their recovery. The care you provide to your most vulnerable employees is a reflection of your corporate culture and impact the stress of all staff when one has a crisis.
An employer sponsored retirement savings plans presents a win-win opportunity for the company as well as staff. Employees achieve a degree of financial security through disciplined savings and the employer facilitates egress from the workforce for aging staff. With the elimination of mandatory retirement it is prudent for employers to provide incentive that encourage employees to plan for retirement.