Corporate Blog

10 Reasons to Include Funeral Insurance under Employee Benefits in India

Aman

18 September, 2024

• 1. Employee Retention and Satisfaction
• 2. Cultural Sensitivity
• 3. Financial Support for the Employees and their Families
• 4. Enhanced Employee Value Proposition (EVP)
• 5. Legal Compliance
• 6. ESI and Employees Compensation Act
• 7. COVID-19 Relief Measures
• 8. Cost-Effective Solution
• 9. Peace of Mind
• 10. Compassion and Empathy

In the realm of employee benefits, funeral insurance is often overlooked, yet it plays a crucial role in safeguarding the well-being of both employees and their families. As organizations strive to enhance their employee offerings, integrating funeral insurance and cremation services, for an employee and his elderly parents, into the benefits package can yield significant advantages.

As per a report from United Insurance, about 78% employees admitted that benefits offered by their employers are the primary reason to stay with the organisation. The same report pointed out that according to 51% of employers, using employee benefits to retain employees will become the centerpiece of employment strategy in the next 3 to 5 years. 

Source: Glassdoor.com

So, its important to discuss what could be the next big thing to happen in the employee benefits segment. Let’s delve into ten compelling reasons why funeral insurance should be an integral part of employee benefits in India.

1. Employee Retention and Satisfaction

Offering funeral insurance demonstrates an organization’s commitment to employee welfare. When employees feel cared for, they are more likely to stay loyal to the company. Enhanced satisfaction translates into higher retention rates, fostering stability and continuity within the workforce.

Employees with elderly parents are particularly caught up in the worries related to their health status and wellbeing. In their subconscious, they also know that someday their parents might not be around. In such cases, availability of a cremation service or funeral insurance given as part of their employee benefits and which covers the employee along with his family, especially parents or in-laws will give them a strong reason to continue with the organisation.

2. Cultural Sensitivity

India is a diverse nation with myriad cultural practices surrounding death and funerals. Funeral insurance allows employees to adhere to their customs without financial constraints. Whether it’s performing last rites, organizing rituals, or transporting the deceased, having funeral insurance ensures cultural sensitivity during a difficult time.

Considering the case of employees of Information Technology sector or sectors that require offshore employment, they always have a lot of questions in their minds while working abroad … What if something happens to their parents while they are away? Will they receive a dignified and respectful last treatment? Will all the traditional rituals be followed? etc.

Getting assurance in form of burial or cremation insurance or service from the organisation will take away their worries enhancing their focus and dedication towards organisational work abroad.

3. Financial Support for the Employees and their Families

Losing a loved one is emotionally devastating, and the financial burden of funeral expenses can exacerbate the pain. Funeral insurance provides a safety net, covering the costs associated with cremation, burial, and related ceremonies. By easing the financial strain, grieving families can focus on the memories and sharing pain instead of keeping an account of expenses.

4. Enhanced Employee Value Proposition (EVP)

A robust EVP attracts top talent and boosts employee morale. Including funeral insurance enhances the overall benefits package, making the organization more appealing to prospective hires. It reflects a holistic approach to employee well-being beyond salary and perks.

It builds a repo for the organisation and shows the employees that their company thinks beyond keeping an on-paper benefit approach. It thinks about the most practical facilities it can confer upon its employees.

5. Legal Compliance

Labour laws in India emphasize social security benefits. By incorporating funeral insurance, employers comply with legal requirements, reinforcing their ethical standing and avoiding potential legal disputes. Moreover, it gives a better reputation to the organization’s inclination towards employee first policy.

6. ESI and Employees Compensation Act

The Employee State Insurance (ESI) scheme is managed by the state authorities in India, and the benefits under it differ in different states. Some states not only provide pension and basic allowances but also provide expenses under death allowance that include accidental/natural death expenses along with cremation or funeral expenses. Similar, provisions could be inferred from suggestions under the Employees Compensation Act as well. Leveraging these existing frameworks ensures seamless implementation of funeral insurance.

7. COVID-19 Relief Measures

The pandemic highlighted the urgency of addressing unforeseen health crises. The ESIC introduced the ESIC COVID-19 Relief Scheme, providing relief to dependents of insured persons who succumbed to COVID-19. Funeral insurance aligns with such relief measures, offering financial support during emergencies.

The companies can go a step further in complementing the government scheme and offer funeral services as a part of employee benefits. In 2024, every employee is looking for something new in their benefits and compensation package.

Funeral Insurance might appear like a taboo but the young employees are far more pragmatic and practical and they are willing to discuss and plan every important aspect of their life. Offering funeral insurance can boost the morale of the employee giving them confidence that my organisation has longer plans for my welfare.

8. Cost-Effective Solution

Funeral insurance is cost-effective for employers. The premiums are manageable, especially when compared to the financial burden of unexpected cremation expenses. Investing in cremation insurance is a prudent choice that yields long-term benefits.

9. Peace of Mind

Employees worry about their families’ future. Knowing that funeral expenses are covered provides peace of mind. This emotional security positively impacts employee productivity and mental well-being.

10. Compassion and Empathy

Lastly, offering funeral insurance demonstrates compassion and empathy. It shows that the organization cares not only about work-related matters but also about employees’ personal lives. Compassionate employers foster a supportive work environment.

Conclusion

Funeral insurance is more than a financial provision; it’s a gesture of empathy and foresight. By including cremation insurance in employee benefits, organizations contribute to a compassionate workplace culture while safeguarding their employees’ families during challenging times.

Remember, a well-structured funeral insurance policy isn’t just about numbers—it’s about honouring lives and providing solace when it matters most.

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