Empowering Employees with Financial Literacy: All About Insurance

Everyone deserves to be the master of their finances, and yet most people spend their lives on a knife-edge between scraping by and complete destitution.

Employers can help team members at all levels to understand money matters more comprehensively, and put themselves on firmer financial footing going forward.

Getting to grips with insurance is a good starting place, so let’s look at the main things you need to know to harness modern insurance products effectively.

Certain insurance products are essential

Some forms of insurance are not a luxury, but a necessity. Knowing which policies and packages fall into this category can have a transformative impact on the financial stability of employees.

The most common and important types of insurance everyone should have are life insurance, home insurance, health insurance, and car insurance. With the help of Australia’s leading life insurance companies, cover for all sorts of calamities can be had affordably.

Life insurance protects your family from hardship if you die, and can be used to pay off your mortgage and provide an income in this tragic eventuality.

Home insurance shields you from the unexpected expenses that come with homeownership, such as paying for repairs after the damage is done to your property, or claiming compensation if you are the victim of theft.

Health insurance covers treatment costs that could otherwise be crippling, and car insurance is a legal obligation in most places if you are a car owner.

Employers can assist with insurance costs

Employers not only have an obligation to ensure that their workers are aware of the advantages of insurance, but also that they don’t necessarily have to be responsible for bearing the financial burden of paying for essential policies.

Lots of businesses offer perks to employees centered around insurance provision. Giving team members health cover, for example, is not just good from an ethical standpoint, but also has advantages from the point of view of employee retention.

Likewise, if your employees are not weighed down by healthcare costs, and are kept fighting fit thanks to the insurance cover you provide, they will be more productive and valuable in the long run.

Additional cover can be helpful

Teaching employees about insurance can focus on the aforementioned must-have types of cover, but there are other packages that could be useful to discuss so that they can choose to build even firmer foundations for their finances.

Disability insurance is a good example of this. It lets employees protect themselves from the fallout of an injury or illness which leaves them incapable of fulfilling their role on a temporary or a permanent basis.

While this type of insurance will not provide them with the full income they were in receipt of prior to becoming disabled, it will still serve as a safety net.

Of course, you may have your own workplace insurance which allows employees to seek compensation if they are injured in the line of duty.

However, for disabilities and illnesses that originate outside of this context, and are not covered by whatever sick pay policy you have, disability insurance will step in to take the strain.

Training is key

Good employers should empower employees with the knowledge they need not just to thrive in the role they hold within the organization, but also more generally in life.

Understanding insurance and being financially stable leads to happier, more loyal employees. As such, it is wise to invest in the training that will endow them with this knowledge in the first place. It is a step that will pay dividends for years to come.