Most employers have failed to make workers aware that they have life cover as part of their benefits package, according to Aon Consulting.
The employee benefit specialist found that, while nine out of ten businesses offer life assurance as part of their benefits package, over half of workers (54%) were unaware of this.
Aon said the gap between employee awareness and reality shows businesses failing to communicate the true value of benefits packages. As a result, some employees are potentially duplicating cover by purchasing life insurance that is already provided by their employer, whilst others have insufficient cover.
Commenting on the findings, Paul White, head of risk benefits at Aon Consulting, said: "There is a genuine opportunity for businesses to stress they give their workforce much more than what is in their pay packet. Life assurance is an essential benefit. Whilst employer-provided cover may not be at the right level to meet all employees' needs, it does offer some level of protection.
"It continues to be one of the most popular benefits and, in the corporate arena remains incredibly cheap. The insurance market for group life cover currently puts market share above profitability, which means employers can continue to provide this benefit at comparable costs to a decade ago."
Aon found 95% of companies offer group life assurance to employees. Of this 69% of companies offer cover to all employees, with 25% offering it to some employees, and a further 1% awarding it to employees on a paid basis.
