5 ways to build financial resilience to support mental health
For a CFO, resilience is what you strive for. A strong balance sheet does not eliminate uncertainty, but it does give an organisation the capacity to absorb a shock, respond calmly to adversity and bounce back from setbacks. Insurance and other preventative support benefits perform the same function for individuals and families, by providing a financial safety net when life doesn’t go to plan.
According to a recent survey on financial resilience by Royal London, almost one in five UK adults has less than £100 in cash savings. Insurance can play a key role in closing the ‘protection gap’ that exists in society today.
In a previous role, I saw how effective insurance combines protection with prevention. That experience shaped my view that workplace insurance should not be treated as an isolated product or a payout reserved for the worst-case scenario.
Alongside budgeting support, savings and debt guidance, affordable cash plans and protection products can create valuable psychological headroom for people every day, in five key ways.
1. Protection creates confidence
The value of insurance begins long before somebody makes a claim. Knowing that an accident, diagnosis, hospital stay or period away from work will not automatically become a financial emergency provides peace of mind.
That matters because financial resilience is not simply about the money someone has today. It is about feeling confident that they can withstand tomorrow’s unexpected costs. Insurance can never remove a difficult event, but it can help to contain its financial consequences, and help prevent a shock spiralling into a crisis.
Insurance, at its core, is the transfer of risk and this translates into peace of mind for the policyholder.
Recent demand suggests employees recognise that value. Personal Group’s recent trading update reported annual insurance sales growth up 11%. To me, that is not just a commercial measure, it also points to a growing appetite and need among businesses and working people for an accessible safety net.
2. Confidence restores control
Money worries often create a sense that events are happening to us, rather than with us or for us. Budgeting tools, savings support and debt guidance help employees take control of the pressures they can anticipate. Insurance complements them by protecting against those they cannot.
We cannot expect every employee to become a financial expert, which is why true resilience - the ability for people to retain control - comes from combining relevant guidance and achievable choices with protection against the unexpected.
3. Control makes recovery affordable
When employees cannot afford to lose income or pay for treatment, they may delay seeking help or continue working while physically or mentally unwell. That can allow a manageable problem to escalate into burnout, prolonged illness or long-term absence, which is terrible for the individual and can have dire consequences for teams and businesses.
Health cash plans can make everyday treatment and early intervention more affordable. Income protection and other insurance products can reduce the fear of losing earnings. Together with a confidential EAP and clear signposting, they empower people to seek support, take any necessary time away and recover properly.
4. Financial safety unlocks people’s capacity for work
People’s bills and debts do not disappear when they start a shift or open their laptop. On the contrary, financial anxiety consumes attention, disrupts sleep and follows people into work.
A credible financial safety net reduces some of that uncertainty. This is not about extracting more productivity from anxious employees. Purposeful work can provide structure, achievement, camaraderie and connection for eight hours a day.
Financial confidence allows work to play that positive role rather than becoming another environment dominated by worry.
5. A sense of optimism becomes contagious
When people can absorb a setback, protect their family and progress towards achievable goals, the future feels less threatening. Essentially, they can afford to be optimistic.
When enough employees feel like that - safer, more in control and able to seek help - the combined effect becomes organisational. Conversations about money and mental health carry less stigma, managers can intervene earlier and support becomes an everyday culture.
For CFOs, insurance and financial wellbeing are connected investments in people risk. Over and above any claims paid out, the return will be found in stronger performance, healthier absence patterns, better retention and a more resilient organisation underpinned by a more productive workforce.
Supplied by REBA Associate Member, Personal Group
Personal Group provides the latest employee benefits and wellbeing products.
