By: Jaco Oosthuizen, Co-founder and MD of YuLife South Africa
What would happen if you were suddenly unable to work? How long would you be able to pay school fees, keep up bond repayments or afford groceries? According to a recent study by the Association for Savings and Investments South Africa (ASISA) at least 55% of salary earning South Africans run the risk of not being able to pay their bills if they can’t work.
Given the impact financial issues can have on every aspect of employee wellbeing, income protection is one of the most important ways an organisation can safeguard employee wellness. Over the past few years, insurtech firms like YuLife have radically improved standard cover by ensuring employees are not only covered should they need to claim, but rewarded for healthy lifestyle changes via their gamified app to prevent a claim in the first place. This is supported by an extensive package of preventative health benefits that protect the wellbeing of employees and help them return to work when they suffer illness or disability.
Employee wellness is good for business:
The importance of employee wellness has become increasingly important over the last few years and rightfully so. A study by the Society for Human Resource Management found that organisations with wellness initiatives saw a 25% decrease in employee turnover compared to those without them. Workplace consulting and research firm Gallup found that employee wellness programs help boost employee engagement and that companies with highly engaged employees experienced a 21% increase in profitability. In South Africa, a study by YuLife and Iposos found that companies with more workplace benefits are better at retaining talent. 51% of employees are more willing to remain at the companies when there are employee benefits in place, such as income protection that gives employees peace of mind and thus helps stabilise and even boost their mental and physical health.
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Lingering misconceptions:
Despite these benefits, there are still several misconceptions about income protection and how it can help improve overall wellness. Around 80% of South Africans rely on unsecured loans to help them get through the month. Yet, many South Africans still think that they do not need income protection because they are young, healthy, single, self-employed, or that it is too expensive.
The truth could not be more different. An estimated 7.5 million South Africans have a disability and according to a study published in 2018, around 3.5% of the population experience severe functional limitations, and the average age of a person with a disability in South Africa is just 47. Employees are also the heart of a business and each of them has a personal life outside of the workplace that needs to be supported. Being an employer of choice that is responsible means caring about the wellbeing of your workforce and that of their loved ones. Moreover, caring about your employees has a direct impact on how your business functions.
Group income protection with a heart:
YuLife’s Group income protection helps your people feel secure by providing cover for up to 75% of an employee’s income in the event that they’re unable to work for a long period of time due to illness or injury. Yulife’s approach focuses on holistic wellbeing meaning that its income protection also helps shield mental and physical health through access to their gamified benefits and wellbeing app. All YuLife Income Protection policies are bundled in with a best-in-class Employee Assistance Program that gives its users access to a virtual doctor, enabling employees to easily speak with medical professionals, clinically trained mental health experts and qualified counsellors. YuLife’s Income Protection ensures early detection and prompt support that can make a huge difference to their recovery.
For many South Africans it may not seem necessary, but having adequate income protection is like having an alarm system at home or airbags in your car. You hope to never need them, but the realities of living in South Africa mean that it is dangerous to live without them. As employers it is imperative that we be able to provide these safety measures for our employees. The success of your business depends on it.