5 ways insurance can help employee financial wellbeing

Insurance providers can help improve employees’ sense of security about their finances

Financial wellbeing, one of the four pillars of wellbeing, is defined by the government’s Money and Pensions Service as “knowing that you can pay the bills today, can deal with the unexpected, and are on track for a healthy financial future. In short, feeling confident and empowered about your money”.

But with Unum’s research showing that 40% of employees surveyed suffered with low energy, 32% were unable to sleep and 25% were so worried about their finances that they felt depressed, financial wellbeing seems to be in short supply at the moment.

Through the combination of core products and added-value services, insurance providers can improve employees’ sense of security about their finances, and give them a greater understanding of how money works. Here are five ways in which insurance can help employees’ financial wellbeing.

1. Having the right products

Providing support when the worst happens is the primary function of insurance and employees provided with income protection, life or critical illness cover are safeguarded should a source of income disappear. Here, insurance can provide confidence about the financial future — whether that’s knowing they have a source of income should they fall ill, or having the comfort of a lump sum in the bank while they are being treated.

2. Educating employees about money

Many insurance products include employee assistance programmes (EAPs) which are often a valuable source of educational financial resources. Unum’s own Help@hand includes an integrated EAP, which offers both legal and financial support to policyholders and gives them access to Unum’s Wellbeing Calendar — full of articles and webinars to help them better understand and manage their finances.

3. Helping out with day-to-day expenses

In July this year, 59% of UK households reported that their cost of living had increased the previous month, according to Statista. And consumer association Which? estimates that round 2.4 million households missed at least one bill payment in the month to mid-July. Which? also estimated that 770,000 people had failed to make mortgage or rent payments.

As people continue to struggle with the cost of living, savings and discounts schemes offered as part of insurance health and wellbeing apps can provide invaluable support. They can offer cash discounts on groceries, days and nights out and family holidays, cashback on purchases and even reward points for use against future purchases.

4. Bridging the costs of vital treatment

The waiting list for NHS hospital treatment rose to a record of nearly 7.5 million in May 2023. At the same time, a lack of access to NHS dentists is causing patients to take matters into their own hands, with reports of some even resorting to pulling out their own teeth.

And when you can access it, the cost of NHS dental treatment is spiralling, jumping by 8.5% in April 2023. Dental insurance can help mitigate the rising costs of routine, emergency or major treatment — contributing not only to good oral health, but also to vital screening for diseases such as mouth cancers and type 2 diabetes.

Unum’s own dental policy guarantees to reimburse 100% of NHS dental charges, giving policyholders and their eligible family members the comfort of knowing they can afford dental care.

5. Making sense of it all

Money problems are closely associated with an increase in mental health issues. Those in debt may feel anxious, have trouble sleeping and feel isolated from family and friends.

Conversely, people who suffer with mental health issues may find dealing with money more difficult. Added value services, such as Unum’s Help@hand, can offer policyholders access to mental health support and counselling — shoring up one pillar of wellbeing with the aid of another.

Overall wellbeing is based on four pillars: physical, mental, social and financial. Core insurance products and their associated added-value services can provide resources to employees to help support their financial wellbeing, both on a day-to-day basis and in times of crisis.

Unum’s Research conducted by Censuswide 30th September–4th October 2022 among a nationally representative sample of 3,005 employed people.