The PMI Puzzle
Increase your business’ productivity, staff turnover and morale with Private Medical Insurance
The saying goes: ‘train people well enough so they can leave, treat them well enough so they don’t want to’. Sounds simple enough, but how easy is it to achieve in reality? While for some being treated well may mean pizza on Fridays, others measure it through something more like having access to a supportive Human Resources team.
Private Medical Insurance (PMI) is a powerful tool to help you treat staff well but provides numerous benefits to businesses. Benefits include exclusive access to GP, physiotherapy, diagnostic and treatment services. These services are often available 24/7, making booking health appointments a simpler task. Similarly, attending appointments in a private clinic means shorter waiting lists. With current maximum NHS waiting time for nonurgent, consultant-led treatment at 18 weeks holding a PMI policy, can significantly reduce this time having a large impact on an employee’s ability to return to work.
The employer benefits are many, PMI is shown to reduce absenteeism, enhance productivity, reduce staff turnover, increase morale and improve company image. For example, in 2016 the Office of National Statistics estimated over 4 days were lost annually by individual workers in the UK due to sickness or injury. Providing workers with PMI cover will not eradicate absences but it can help them recover quicker. Also significant is the effect of PMI on reducing staff turnover, research revealed 76% of employees report good employee benefits are one of the top reasons they remain loyal to their company.
The business world increasingly understands the links between good health and enhanced productivity. Workers with positive physical and mental health are more likely to be open and cooperative. Ultimately leading to increased productivity.
We know sitting or standing for prolonged periods can cause considerable muscoskeletal issues. Additionally, work pressures can lead to mental stress. Visiting a physiotherapist or mental health professional can be costly but necessary to improve these symptoms. PMI can reduce the financial burden by covering these costs, leading to improved wellbeing and work productivity.
One PMI, part of the One Broker Group works closely with businesses to ensure the PMI puzzle is solved finding the right cover to fit individual business needs. Creating a package to match the complex needs of the business and its employees. One PMI is Included in a handful of UK insurance brokers offering an innovative new healthcare product from Equipsme, aimed at businesses with 2-249 employees. One PMI offers exclusive access to cover specifically designed with affordability in mind.
For individuals and families, through to businesses with a workforce of any size. One PMI policies help to reduce absenteeism, improve morale and retention, reduce the impact of back or neck disorders on your business or family.
It’s interesting that many people are still unaware that they may be able to pass on their pension savings after their death. If you have unspent pension in the pot when you die, you can pass benefits on to any beneficiary – not just a spouse or dependant, as was the case under the rules before April 2015.
This may provide a particularly useful planning opportunity for those who have other sources of income – property or investment income, for example – on which they can rely during their own retirement. The tax treatment of inherited pension benefits depends on whether the pension holder is under age 75 on death.
If death occurs before 75, any benefits passed on to heirs are free of tax. If it happens after 75, the inherited benefits are taxed at the recipient’s normal rate of tax for their income level. In both cases, benefits can be passed on as a lump sum, a drawdown pension or an annuity.
These rules apply to funds that haven’t already been used to buy an annuity for the pension fund owner: if you have an annuity in payment, you may need to check the terms of the contract to see how it deals with spouses and/or dependants.
The Lifetime Allowance (LTA) for pensions still applies and if the fund hasn’t been crystallised (used to provide an income) before the pension holder’s death, it will be tested against the LTA at that point and any tax due will be chargeable. Currently the LTA stands at £1,030,000. However, any inherited pension benefits won’t count towards the recipient’s own LTA.
This is one financial arrangement that doesn’t belong