There are clear communication barriers to break down on both sides of the coin. Many employers don’t quite understand how to convey the benefit to their team and employees are a little lost when it comes to asking for advice.

There is no one-size-fits-all solution either, as the challenges are vastly different in smaller, boutique and start-up companies in comparison to large corporations.

The fact remains that wellbeing needs to be brought to attention on a wider scale; further, the link between mental wellbeing and financial wellbeing needs to be illustrated to employers and employees with clear routes to advice offered so that every individual can take advantage of the benefit.

Real-Life Scenario Exercises

Recent market analysis emphasised the distinct need for such guidance in the workplace. Research by Scottish Widows found that 73% of people want a financial adviser to help them predict how major life moments could impact their finances.

In addition, one in four young people (aged 18-34) want their IFA (Independent Financial Adviser) to offer real-life scenario exercises for common situations such as marriage, divorce, and starting a family.

It is important to note how times are changing. This figure is four times higher in comparison to those employees aged 35 and over which shows that the way in which benefits are communicated needs to change and evolve in line with employee needs.

The Scottish Widows data shows that those aged 18-34 are moving far away from the traditional advice model and towards a more flexible and personalised service.

Among key findings, many are far more open to new methods of communication such as chatbots and social media. There is also increased interest in ethical forms of investing while new research shows that robo-guidance or a robo-investing service might also be considered.

Advice Model Evolution

Another issue that could potentially spiral out of control is the changing habits of young people. As many choose to get married later in life or not get married at all, there is far less awareness around how and when they need to seek financial advice.

In the absence of such clear milestones, employers must bring the financial solutions to their team by using IFAs, instead of waiting for the team to identify the need for action to be taken themselves – and then acting on this need.

Research by Smarterly into ‘Realigning the workplace savings offering to meet the needs of millennials’ surveyed employees and HR professionals in the UK to show that 86% of employees with financial concerns would accept financial support from their employer. In addition, 66% think that having this type of support would make them feel more comfortable in making financial decisions.

But a significant issue remains because many older employers believe that financial support begins and ends at pension provision. The Smarterly research shows that 28% of employers feel that they should only be responsible for providing a pension rather than other forms of saving vehicles. This identifies a clear need for key decision-makers to understand the need for a wider approach to financial good health.

Saving for retirement is no longer the prime financial concern for younger people and employers/benefits packages need to respond appropriately. Retirement may be the end goal but there are many financial milestones that people need to tackle beforehand, such as buying their first property – a key ambition for younger people.

There is also a common misconception among people of all ages that financial advice is only a luxury for the rich. The truth is that none of us can afford not to look after our money. Financial wellbeing focuses strongly on the education aspect to help people understand current and future financial risk and put the measures in place to prepare accordingly.

Bringing Financial Solutions to Life

Among increasing demand for face-to-face interaction and engagement to bring common scenarios to life, our team at Vintage Corporate have found that workplace workshops are highly effective for businesses of all scales.

With financial priorities and goals vastly different across the different age demographics, segmentation is key to communication and the provision of personalised financial advice.

In line with this need, our workshops can take on many different formats depending on the size, goals and structure of the company. This might mean a workshop for the entire team in smaller outfits or a series of smaller workshops to meet with different teams in both small and large workplaces if a diverse range of needs must be taken into account.

The workshops may also be grouped by key factors including age, salary or how long the employee has worked at the company. Part-time, remote and other unique working situations might also be considered.

We bring financial risk and solution to life in a non-threatening context to help individuals understand how to build a resilient portfolio. This method also supports those employees who may already be in financial jeopardy, in facing up to their issues.

Asking the Right Questions

Many individuals could not previously comprehend how to ask for advice, and this is why face-to-face contact is so valuable. We foster an environment that encourages employees to ask the right questions about their financial future and address specific individual issues.

Inheritance tax, pensions, getting on the housing ladder and dealing with debt are just some of the more popular topics covered at our sessions.

Follow-up from past workshops shows that some clients have seen a record number of employees voluntarily increase their pension contributions.

Employers have also reported that clients in financial distress have taken action as a result of the workshops, by arranging an appointment with debt counsellors as well as putting more money into their pension.

For more information on arranging financial wellbeing workshops for your team, contact Vintage Corporate today.

The post Bringing Financial Wellbeing to Life first appeared on Vintage Corporate Limited.

A case in point is the fact that a quarter of all Group Income Protection claims are now made for mental health issues. According to data by Legal & General, who have confirmed it paid out £292m in group protection claims in 2018, these figures reinforce market-wide research that shows that mental health problems continue to be the most common cause of claims.

Different Types of Cover

One of the most important things to remember is that life cover and critical illness cover don’t cover mental health. Many customers naturally assume that these types of protection would cover such a prevalent health issue, especially as mental health is also one of the most common causes of workplace absenteeism but this is simply not the case.

In contrast, income protection would pay out if you were off work past the deferment period on the policy so it could represent a very valuable form of protection for certain people.

The L&G research shows that mental health accounted for one in four group income protection claims last year, helping hundreds of employees back to work both within and beyond the deferred period with the support of the EIS.

The Value of Value-Added Services

This research also reinforced the importance of value-added services such as early intervention services and rehabilitation including physiotherapy. About two-thirds of claimants who returned to work using L&G’s rehabilitation services in 2018 did so before having to claim on their group income protection policy. So, the value speaks for itself.

As a market leader in protection, L&G services set a benchmark for other insurers with a flexible offering where trained clinicians are used to assess the best treatment for employees for optimum health and productivity results.

This is an accurate reflection of the increasingly intelligent and bespoke nature of protection insurance, and the value that it provides to individuals, employers and their team.

The industry continues to grow and evolve, and this summer’s Protection Review Conference will see an introductory session dedicated to the issue of mental health and underwriting.

A panel of experts will discuss how the industry can improve access to insurance and how can we get more people covered, considering issues such as inclusion and the role of technology in underwriting and claims.

An Open Conversation

Considering insurance beyond the core financial element is a topic that Justin Harper takes on with his guest blog for Protection Review. He looks at the role of the protection industry when it comes to mental health and how the conversation has become more open around a previously taboo topic.

From an industry perspective, this means that more challenging questions can be posed on how to best communicate this life-changing support from the insurer to the client.

Similar communication methods can be used when it comes to employers conveying value to their employees. It is important to communicate how protection cover helps people become more resilient and gain access to much-needed support from the earliest stages of their mental health issues. The value-added services must be emphasised to show that this is a holistic service.

Early Intervention

Early intervention is arguably the most valuable aspect of protection insurance where employers can demonstrate support for colleagues at the earliest stage. This is also important for risk management and business bottom line, catching the illness early to help employees recover and return to work as quickly as possible.

According to L&G’s claims and governance director, nearly 3200 rehabilitation treatment sessions were used through their partners in 2018 which shows that recognition of the value of added services is certainly taking off.

More than a third of all claims submitted to the group risk industry in 2018 saw individuals able to return to work because of early intervention measures with more than half of individuals using available early interventions to help with mental illness. 

In addition, early intervention referrals for mental health also support employers in dealing with complex illnesses without any additional cost to the premiums paid.

Holistic Protection Insurance Income protection provides not only financial relief but also emotional support for individuals who are concerned about taking time off work.

With mental health issues, these worries can make problems far worse. Without early intervention, employers risk allowing issues to fester and the employee taking extended time off to deal with deeper issues.

This all means that we need to speak the right language when it comes to mental health and continue to break down stigma. Employees should feel able to approach their employers should they experience symptoms and have an open conversation without judgement.

For more advice and support on choosing the most effective protection insurance policies for your business, contact Vintage Corporate today on 020 8371 5232 or email info@vintagecorporate.co.uk

The post Mental Health and Income Protection first appeared on Vintage Corporate Limited.