Life policies as a non-wage form of employee motivation

Service Business

There are many ways to motivate an employee in a non-financial way - from sports tickets, through private medical care to vouchers. How can you additionally motivate your employee and thus gain his loyalty? It will definitely be a good idea to pay premiums for life insurance policies.

Life policies for employees of Poland - Central Europe

In Poland, 80% of life insurance is paid for by the employees themselves. Financing the policy by the employer is still a rarity in our country, only of life insurance are those financed by the employer. In Central European countries, the policy is paid by sponsored programs, i.e. the premium is financed by the employer, which definitely distinguishes Poland from countries such as the Czech Republic, Hungary, Romania and Slovakia. Nevertheless, in our country we dominate the number of available benefits and the possibility of insuring various life situations.

Benefits for the company from purchasing a life insurance policy for employees

If the employer decides to take out group life insurance, this protection applies to both employees and their families. This insurance guarantees additional financial support in difficult situations such as hospital stay, surgery, accident or serious illness.

Employers, on the other hand, will gain a loyal and motivated staff by taking up group life insurance policies. The advantage of introducing this form of motivation is also increasing the attractiveness of the company on the market - the fact of taking care of the employee and his family contributes to building a positive image of the company. Another benefit for the business owner is the ability to include the premiums paid in tax deductible costs. In addition, the employer will be able to be released from the obligation to pay death benefit. This is in line with Art. 93 of the Labor Code.

Article 93 (7).

Life policies for employees - forms

An employer deciding to cover his employees with life insurance may choose the scope and type of policy. Basically, he has a choice of two forms of paying for the insurance: in the first, the company pays the entire policy, while in the second, the employer decides to divide it between the company and the employee. In the latter case, the employer pays the basic life and health insurance cover, and the subordinate covers the costs related to its extension, i.e. family insurance. The employee pays a small contribution, which does not significantly affect the degree of motivation to work. Importantly, this model is available only in private workplaces, as there is no possibility of refunding the contribution in the public sector.