Did you know that not every company is obliged to offer life insurance to its employees? There are different categories of work, but not all where the benefit is mandatory. However, some unions’ collective agreements determine that the insurance is offered to workers who work in several areas, such as civil construction, gas stations, food stores, condominiums, and many others.
But when is life insurance mandatory, and when is it optional? Let’s answer this and other questions below!
After all, when is life insurance mandatory?
According to Brazilian legislation, not all companies are required to offer benefits to their employees. However, CMS life insurance is indispensable for those who work in the following areas:
- Construction;
- fuel stations;
- Condominiums;
- Food trade and retail;
- Bars, bakeries, buffets, bakeries, steakhouses, pizzerias, and restaurants;
- Hospitality and accommodation;
- Accounting;
- Education;
- couriers;
- Service providers;
- dispatchers;
- Textile and clothing industries;
- Dishware, earthenware, or ceramic industries;
- Children’s clothing industries;
- Installation and maintenance of telecommunication networks.
But it is not just these categories, since others also receive insurance in different states of the country, such as, for example, workers in electrical, hydraulic, and sanitary installations.
It is worth remembering that there is a difference between group life insurance and individual plans. Several unions require the mandatory contracting of group life insurance. However, this model differs from contracting the individual plan, both in the types of coverage offered and especially in amounts, which may be lower.
Benefits of life insurance for employees
Life insurance is the benefit that offers more peace of mind to the employee and his family, but not only that. Other advantages can be highlighted, as it is also an extremely valuable resource for attracting and retaining new employees.
Offering the benefit can put your business in a prominent position in relation to competitors when it comes to hiring a good employee. After all, this is a factor that motivates candidates, making them feel valued by the company.
Among the main benefits of offering life insurance for employees, we can highlight:
1. Regularization of your company according to union rules: if the union’s collective agreement determines that life insurance must be offered to your team, the most appropriate thing is to follow the legislation;
2. Option with better cost-benefit: collective life insurance plans are less expensive for the company when compared to individual plans, and it is possible to offer the employee the main coverage at a more affordable price. It is also possible to customize the plan to include coverage for cases of disability or time off work;
3. You can choose an indemnity that fits your budget: you can choose what the indemnity value will be for the contracted coverage; thus, you are able to offer an important benefit to the employee, and that fits in the company’s budget;
4. More valued employees: with life insurance, your employees will have much more peace of mind to perform their day-to-day tasks, in addition to feeling more valued by the company. In the event of death, for example, the employee’s family will be able to count on financial support for a specified period;
5. Income tax deduction: for companies that opt for the taxable income tax regime, it is possible to deduct the amount of life insurance payments from income tax.
When can life insurance be used?
Unlike what many think, life insurance is not just for death. After all, it is possible to offer coverage that covers a series of different situations related to eventual emergencies that the employee may have during his workday.
Life insurance may include coverage for temporary disability due to accident, in which the employee will receive a daily income in cases of absence from work, or an advance of the premium in life for cases of terminal or chronic illness. Thus, the employee can anticipate the amount of compensation while still alive. In addition to these, there are many other coverages that are worth it, such as emergency assistance, medical-dental expenses, funeral assistance, among others.
While not mandatory for all professional categories, this is a win-win benefit and says a lot about the concern your company has for the health and safety of its employees.
