GROUP LIFE INSURANCE
A group health plan is an employee welfare benefit plan established or maintained by an employer or by an employee organization (such as a union), or both, that provides medical care for participants or their dependents directly or through insurance, reimbursement, or otherwise.
HERE ARE 5 REASONS TO ADD GROUP LIFE INSURANCE TO YOUR EMPLOYEE BENEFITS PACKAGE.
It can be a balancing act to assemble a top-notch employee benefits package. After all, there are plenty of factors to weigh, including budget, employee needs and what benefits to offer. Not to mention potential options to include, like group insurance, paid time off and employee perks—think on-site dry-cleaning and free snacks for the break room.
Consider the employee benefits you offer. Do you count life insurance among them?
Why are more employers adding group life insurance to their benefits package?
Life insurance can help employees protect their loved ones.
Did you know more than 35% of all households would feel a negative financial impact within 1 month after the death of the primary wage earner?1 Having life insurance can help your employees have confidence that, should they pass away, their family will have a financial safety net to replace lost income, cover final expenses, everyday living expenses, and long-term obligations that may otherwise cause them financial strain. Life insurance can even be used to help fund a child’s education.
It’s a key benefit to help you attract and keep quality employees.
When candidates are searching for a new job, benefits are a main differentiator, and prospective employees tend to consider a position’s benefits before they apply. That includes life insurance. Whether you cover the premium or offer employee-paid, voluntary life insurance, group rates make coverage through an employer an affordable option for employees. Including life insurance in your benefit package can make you stand out against organizations competing for the same candidates—and help you hold on to the good employees you’ve already hired.
It can be a budget-friendly option for you to offer.
If you think offering life insurance to your employees is out of your price range, think again. There are plenty of affordable life insurance solutions available. You can pay all, part, or none of your employees’ benefits, depending on your needs and goals. And keep in mind, group life insurance premiums are based on an overall assessment of a company’s risk. Spreading that risk helps bring group rates down, offering an affordable coverage option for employees.
Offering life insurance can help you enhance your company culture.
For many employers, building a strong company culture is about creating an environment that brings your core values to life. Culture is often what drives employee satisfaction. It makes employees feel like they belong, like they’re valued. That’s why including life insurance as an employee benefit plays a solid role in shaping your culture. It shows you put your employees first, and that you’re an employer who wants to help employees have a more secure financial future. For this reason, offering life insurance can help you see improvements in employee turnover, not to mention a general boost in productivity and company loyalty.
The best life insurance policies can be catered to your business needs
Your business—and employees—are unique. Fortunately, you can customize your group life insurance to make it the right match for you. As you’re considering life insurance policies, think about these questions:
Will the company cover the premium or will the employee … or a combination?
What type of policy will you offer—term or permanent?
What optional and additional benefits will be offered?
Will the proceeds be paid in increments or as a multiple of salary?
What will the minimum and maximum benefit be?
How will the coverage transition— or not—if the employee leaves?