Corporate Life Insurance: Get the Right Plan for Your Team
Employee benefits attract and retain the right talent for every business. One company might offer bonuses and more vacation days, and another might present wellness programs and childcare assistance. Although those things do entice, one other benefit can be more persuasive: group life insurance.
Corporate group life insurance in KSA is a key benefit that can work in two ways: One, it engages top talent, and two, it boosts employee morale and productivity. Adding group life insurance to your benefits package tells would-be employees that you’re invested in your workers. Employees feel more secure in their jobs, knowing they have financial protection should anything happen.
But what exactly is group life insurance? How do you choose one that fits your employees needs?
What’s Group Life Insurance?
Group life insurance provides a death benefit to the beneficiaries if the employee passes while working at the company. The death could be the result of an illness or an accident.
This life insurance also covers disability, whether the injuries are permanent or temporary, and partial or complete. The insurance company may pay the insured in full if they’re not able to work anymore because of the injuries they sustained. If it’s a partial disability, the payment may be a percentage of the insurance amount.
The coverage of the policy can also include medical expenses, repatriation of the remains, and terminal illness.
Another type of group life insurance provides financial protection to the employee and their families if they can no longer meet financial obligations. This is called group credit life insurance, which pays out a loan in the event of death and disability.
Your business can tailor the life insurance coverage according to your workforce.
Does Saudi labor law require group life insurance?
Health insurance is mandatory, so businesses must provide health coverage to employees, including expat workers. But life insurance is optional. Although it’s not mandated by law, many companies still offer the benefit because of the positive impact on the workforce.
Ultimately, it can also cement a company’s reputation, sending a message that the business supports its employees (and by extension, their families) in their time of need.
But how does it work?
Rolling Out and Running a Policy at Work
You pick a provider, discuss what you want covered, and hand over the necessary employee information. Usually, that’s ID copies, job titles, salaries, and contract details. Once the policy is live, it runs for a year.
Most plans will cover both locals and expats, though it’s always smart to confirm that coverage. Some insurers also offer web-based dashboards where human resources can manage everything in one place: add new hires, track claims, flag upcoming renewals — no fax machines or phone tag required.
Choosing a Group Life Insurance Plan
You’ll find plenty of insurers in Saudi Arabia, so consider your options before deciding on one.
You’ll want to start with the insurance company’s credentials. Is it approved by Saudi’s insurance regulatory body, the Saudi Arabia Monetary Authority (SAMA)? SAMA-approved companies demonstrate financial health, compliance with regulatory requirements, and transparency with policy conditions. SAMA also enforces ethical and financial market rules, safeguarding policyholder interests.
How long has the company been operating in Saudi Arabia? Longevity in the insurance industry inspires trust because it means it’s an established business that can meet its financial obligations.
Take it a step further by finding insurers that comply with Shariah guidelines. This means that the company operates under Shariah principles, focusing on mutual assistance, cooperation, and risk-sharing. It avoids elements that are prohibited, like gambling, interest-based interactions, and uncertainty.
Then, dig into the actual benefits. Does the plan only cover death? What about disability, repatriation, and hospital bills? Can you add options for dependents?
Will you be able to customize the policy? It’s important to have room for flexibility because your workforce may change as the business need shifts along with market changes. For example, you might hire more local employees and expand your remote workers.
Then, read the fine print. Will the high-risk hobbies of some of your employees limit coverage or raise premiums? What if some of your workers have pre-existing health conditions? Have a long consultation over these exclusions and limitations to prevent inconveniences and confusion when the time to claim comes.
Ask the insurance company about their claims process. Learn about the steps, the documents that must be attached, and the speed in which the claim gets processed. Will you be able to talk to an agent 24/7?
A simple, online processing will mean faster claims approval. And faster claims approval minimizes the impact of an illness, accident, or death.
Group life insurance offers peace of mind to employees who have families to support or have no other financial means. The same benefit provides a compelling reason for top talent to choose you as their place of employment. It may not be as trendy or creative as modern employee benefits have become. But group life insurance is a powerful and practical benefit that reflects long-term care for your workforce.
At least once a year. But if your team is growing fast or if roles are changing, it’s worth checking sooner.
That’s a wrap. You now have a clearer picture of what corporate group life insurance in KSA covers — and how to make it work for your business, team, and budget.
