Small and Medium Enterprises (SMEs) are the spine of South Africa’s economy, contributing billions to the nation’s GDP and employing 60% of the population. While these businesses drive economic growth, they often overlook one crucial aspect—protecting the employees who make their success possible. Group risk insurance, particularly group life cover, offers an affordable, customisable solution to ensure that companies safeguard both employees and the business itself.
Prioritising Employee Wellbeing
Group life insurance provides financial security for employees and their families in the face of unexpected events, such as death or disability. In an SME, where the loss of even one employee can have a devastating effect on operations, offering this protection can boost morale and loyalty, knowing that their loved ones will be cared for if the worst should happen.
Jaco Oosthuizen, Co-founder and Managing Director of YuLife SA, says, “SMEs rely heavily on individuals within their teams to drive growth and innovation. Group life insurance is an investment in the welfare of the people who make that possible, offering them security and stability in uncertain times. It also gives them peace of mind.”
Shielding Your Business
Group life insurance doesn’t just protect employees; it also shields the business. The loss of a key employee can cause disruptions, and in smaller businesses, this impact is even more pronounced. Group risk insurance helps businesses manage the financial shock, giving them breathing room to recruit replacements or reorganise without jeopardising operations.
Take Advantage of Tax Benefits
One of the lesser-known advantages of group risk insurance is its potential tax benefits. Premiums paid for group life policies can often be deducted as a business expense, providing a financial incentive for SMEs to invest in this protection. This makes it a smart choice for business owners looking to maximise both financial efficiency and employee wellbeing.
Customised Cover with Expert Support
A common misconception is that group life insurance is too costly or complex for smaller businesses. In truth, policies can be tailored to fit an SME’s budget and needs. Group policies are usually more affordable than individual policies due to the collective nature of the risk with insurance providers often spreading the risk across the workforce leading to lower rates overall.
Dispelling the Myths
One of the prevailing myths is that group risk insurance is exclusively for large corporations. In reality, SMEs can access affordable, scalable cover that is well within their reach. By working with the right insurance provider, businesses can protect their most valuable asset—their people—without overstretching their budget.
For SMEs that contribute so significantly to South Africa’s economy, ensuring the security of their employees driving their growth is more than a business decision—it’s a responsibility. Group risk insurance offers an affordable, effective solution to protect both employees and the business.