Google
RSS Feeds RSS | Views on ITInews | contact | terms of use | privacy 
 


Editorial Categories:

FINANCIAL SERVICES
ADVISERS & BROKERS
BANKING & BONDS
BUSINESS MANAGEMENT
COLUMNISTS
CONSUMER AFFAIRS
CRIME & FRAUD
ECONOMY & GLOBAL
EDUCATION & TRAINING
ESTATES & WILLS
HEALTHCARE INSURANCE
INDUSTRY & LEGISLATION
INSURANCE
INVESTING
LEGAL AFFAIRS
LIABILITY INSURANCE
LIFE INSURANCE
MARKETING
PEOPLE & COMPANIES
POLITICS
PROPERTY
RETIREMENT PROVISION
REVIEWS
ROAD ACCIDENT FUND
SHARES & UNIT TRUSTS
SHORT-TERM INSURANCE
TAXATION
TECHNOLOGY
VIEWS & LETTERS


Forthcoming Events:

No Upcoming Events


Available Recruitment:

No Vacancies Listed...


Save by getting insurance quotes


Your Editor, Brent WilsonInforming Consumers and Financial Advisors since 1988 | Click Here to Advertise
Press Offices > Life Insurance Companies

Lion of Africa Life
Press Office Feature : Small businesses look to funeral cover as first step in looking after staff

Company: Lion of Africa Life
Author:Daniella Erdis
Email:[email protected]
Posted:07 Sep 2007

 Email this article Comment on this Article  Print this article

Very few offer staff any form of employee benefits other than straight wages

Small and Medium Enterprises (SME’s) account for about 50% of private sector employment in South Africa and 80% of formal sector job growth in recent years according to some studies.

But while SME’s are an important source of employment for South Africans, very few offer staff any form of employee benefits other than straight wages or salaries.

That is according to Nathan Adriaanse, Marketing Manager of Lion of Africa Life Assurance.

“Most small business owners are thinking purely about the essential items like salaries, wages and utility bills. While this is understandable, they are missing out on tax effective ways to improve the financial situation of their workers and make the firm a more attractive prospect for potential employees.   

Adriaanse says part of the reason for this is that small business owners are daunted by the huge array of employee benefit options available in the market, as well as the costs involved to provide these benefits.

“Many new business owners are simply not in a financial position to start offering pension fund contributions, death and disability benefits or medical aid to staff members, which can cost hundreds or even thousands of Rands per individual.

Adriaanse says a solution for employers who want to offer some form of employee benefits is to start small. “A good place to start is by offering funeral cover to staff, which is cheap and easy to manage.  For example, there are products aimed at small and medium sized businesses. Employers take this type of product out for the entire staff compliment. Not only does the employer receive cover for the staff but often also for the entire family.”

He says this kind of benefit allows the employer to invest in staff indirectly and it shows that the business owner is addressing the needs of entire family circle, thereby ensuring that the employees view the actions of the business owner in a positive light.

“This type of product is seen as the stepping stone to implement the traditional employee benefits offering such as pension or provident funds, which the business would only be in a position to afford at a later stage.

According to Adriaanse, there are generally two options available to clients – either on a compulsory basis where the employer pays the premium or on a voluntary option where the employer contributes 50% towards the total premium with the balance paid by the employee.

He says the cost of this type of cover is extremely low. “For example, through the new Lion of Africa Twilight Family Funeral Fund, funeral cover of R5 000 can be bought for as little as R18,50 per staff member, with personal accident cover of R5000 applicable to the main member and spouse. For R30, R10 000 cover can be bought.”

He adds that the added benefit of funeral cover is the speed with which the money can be accessed when it is needed.

“While savings accounts, life insurance policies and pension funds are all good ways of ensuring that those who are left behind are financially secure, there can be delays in accessing the money in these vehicles.”

He says this can be a problem when it comes to paying for the funeral as most funeral directors require payment upfront. “One of the best ways to ensure there is cash available for the funeral is through a funeral policy, which ensures an immediate cash payout on the death of the policyholder.”

Comments:
There are no comments at this stage. Be the first to comment!
Please Login To Comment On an Article - Click here To Login

ITInews invites comments at the foot of each of its articles in which readers can respond freely - anonymously if they wish - to various topical issues and industry debates. However, comments submitted by readers that are defamatory or deemed, by the editors, to be racist or obscene will be deleted from the database. Furthermore, ITInews's editor would like to caution potential posters on its websites that while it welcomes robust debate, it will not hesitate to make the IP addresses of the authors of such defamatory statements available to the authorities, in the event of a court order compelling them to do so.



Get car, home, life and business insurance quotes in 3 easy steps


Lion of Africa Life


Join us today

More from Lion of Africa Life
Lion of Africa Life’s position on child grant policies
It is worrying that a real benefit available to the poor may be removed


Archived Articles featuring this company ...


Insurance Quotes


Car Insurance Quotes
Household Insurance Quotes
Business Insurance Quotes
Funeral Insurance Quotes
Life Insurance Quotes

Read the InsuranceQuotes Blog
ITM Website Design Cape Town
Copyright © 2005 - 2015 ITInews Online Publications (Pty) Ltd. All rights reserved Insurance Times & Investments Online and ITInews. ..::ISSN 1995-1256::.. No part of the materials including graphics or logos, available in this Web site may be copied, photocopied, reproduced, translated or reduced to any electronic medium or machine-readable form, in whole or in part, without specific permission from ITInews Online Publications (Pty) Ltd. Distribution for commercial purposes is prohibited.