Small and medium-sized businesses can benefit hugely from providing life insurance for their employees, says leading financial advisor Patrick McEntee.
Staff retention and the ability to attract top talent are some of the reasons why most multinationals include life insurance as a standard addition to their employee benefits packages.
While the larger companies have the resources and capital to include cover for their employees, Patrick says that group policies are not the huge expense employers think and that life insurance represents a smart investment for SMEs as well.
“Employees want to join companies that value their needs and a good benefits package that includes life insurance cover is a big draw for the top talent,” he said.
“I also think its important for employers to ask themselves how they would feel if one of their employees died and they had to do a raffle or have a collection in the office for his family.”
“Then they should ask themselves how it would feel to be able to tell that person’s wife that because he was on a salary of €25,000, she can expect a payout of €100,000 through his cover, or monthly support.”
“I know what kind of employer I’d want to be.”
Patrick is the founder of PGM Financial Services, a two-time All-Star accredited financial services company that prides itself on providing its clients with the type of advice that allows them to achieve and maintain the lifestyles they desire.
Patrick has recently been inducted by the ALl-Ireland Business Foundation into its Lifetime Achievement roll of honour.
The accolade is in recognition of Patrick’s outstanding contribution to the Irish financial services sector throughout his career.
Patrick says he works for clients, not institutions, “providing good solid advice that will have a positive impact on their lives”.
He says his business has been successful because of the advice it has given rather than the products it has sold.
“The most important part of what we do is working with clients who want to protect their families and employers who want to protect the families of their staff in the case of sickness or untimely death,” he said.
“This is not the sexy side of the financial services business, but it’s by far the most important.”
According to Patrick, many employers are of the opinion that life insurance cover is an expensive luxury, reserved for large companies and multinationals.
He told the All-Ireland Business Times that this is not the case.
“It’s not that expensive to be an inclusive employer,” he said. “Group schemes are excellent ways to ensure that the families are looked after in the event of the untimely death of an employee.”
“Group insurance is based on numbers and ages and the more young people you have onboard the more the cost is reduced.”
Patrick has been honoured with a lifetime achievement accreditation from the All-Ireland Business Foundation in recognition of the enormous contribution he has made to the financial services industry.
In accepting the accolade, Patrick offered his advice for business owners who understand the need to safeguard the future of their companies.
“I would advise business owners to first get a thorough valuation of their business and then I would urge them to consider insurance cover for partners and key workers before establishing a clear succession plan.”
“Business leaders have to consider the implications for their company if a senior partner or a key worker dies.”
“If a partner in a business worth a million euros suddenly passes away, his wife can ask for half a million euros for his share of the company – that’s if there is no insurance plan in place.”
“The remaining partner might not have the funds to give his wife so she could decide to sell his part of the company – this could prove disastrous.”
“These are very real scenarios that happen all the time.”
To learn more about PGM Financial Services Ltd, visit their All-Star showcase page here.