What’s the problem with Company Life Insurance?

Of all the protection insurances you could buy, you’d think that Company Life Insurance would be as straightforward as it gets.

Infuriatingly, that’s not always the case!

Capgemini’s World Life Insurance Report 2025 revealed that many businesses aren’t receiving the benefits they expect from their life insurance policy.

Fortunately, many of these issues can be avoided with the help of an expert broker.

Let’s break down some of the main concerns and how an employee benefits broker like Hooray Health & Protection can help address them.

Do you need FREE one-to-one advice and life insurance quotes for your business? Contact our award-winning friendly advisors on 01273 222805 or [email protected].

Problem 1: Unclear coverage details

34% of policyholders said that their coverage details were unclear. Many employees sign up for Business Life Insurance without fully understanding what’s covered, what exclusions there are, or how to file a claim. This can create confusion, especially during stressful times.

Solution: Clear communication is essential here. A good, knowledgeable broker like Hooray Health & Protection can explain how coverage works in easy-to-understand language, and even host presentations or Q&A sessions to ensure employees feel confident about their policies.

Problem 2: Poor customer service

Long wait times (32%) and difficulty reaching customer support (34%) were common frustrations among respondents. The last thing you should face is endless hold music or unresponsive help desks, especially during a distressing time.

Solution: An employee benefits broker can step in, follow up, and make sure employees get the help they need without any delays. You can also lower the chances of these problems arising in the first place by choosing a life insurer with a track record of paying out claims promptly. We help by recommending insurers who we know have a smooth claims process.

Problem 3: Limited add-on

About 25% of respondents felt their Group Life Insurance didn’t meet their personal needs. For example, one employee might want Critical Illness Cover added onto the plan, while another might like wellness benefits or children added onto a policy. However, many group policies offer little flexibility in this regard.

Solution: Flexibility is key. By working with a broker you can quickly find out which insurers offer more flexibility and add-ons to their plans, like Group Critical Illness coverage or family coverage. So if you need more flexibility, we can guide you towards the right policy.

Problem 4: Outdated digital tools

We are living in a digital world where people expect products and services to integrate with technology. This includes managing their insurance policies online. However, 28% of survey respondents were dissatisfied with the lack of self-service tools.

Solution: Digital platforms should simplify and not complicate insurance management. Some brokers, like Hooray, can give advice on platforms – and even help troubleshoot problems should they arise.

Problem 5: Difficult claims process

The claims process is often stressful enough without unnecessary complications. Yet, 38% said the lack of clarity around claim statuses and requirements made the process even harder.

Solution: Again, an employee benefits broker can be your guardian angel here. We only recommended life insurance providers who we know have a track record of smooth claims processes. In the rare event that a problem should arise, we’ll be there to troubleshoot on your behalf and chase the insurer so you don’t have to.

Making life (insurance) simple

Life insurance is one of those policies you hope you’ll never need. But when it is needed, it has to work as expected. It’s the one thing families shouldn’t have to worry about when they have so much else to deal with following a loved one’s passing.

If you’re thinking of arranging a Business Life Insurance policy for your employees, it’s best to get in touch with one of our team. Our service comes at no extra cost on your policy and you’ll be assured of getting a scheme that works as expected, with the added bonus of dedicated support long after you’ve purchased the policy.

To get a free consultation and quote from a friendly advisor, call 01273 222805 or email [email protected].