Top Reasons to Add Group Life Insurance for Your Employees
Offering employees a benefit such as group life insurance can be a huge decision for your business. You must consider your company’s budget, what the benefits offer, and more. Even so, more and more employers are choosing to offer their employees group life policies. There several reasons this can be a good option for your business, too.
1). Attract and Keep Talented Employees
A great benefits package is a strong incentive to attract and keep talented employees. The type of insurance package you choose can make your business stand out from other employment competitors. This is a great way to attract top talent in a competitive employment market.
In addition, offering benefits such as group life can help you hold on to those employees you already have. Your employee turnover rates will decline, as good benefits packages are difficult to find with other employers.
2). Protect Employees’ Families
A group life policy is a great way to help protect your employees’ families. Life insurance provides their families with financial security, giving employees peace of mind.
Not only will you give employees peace of mind, but you’ll also find that productivity increases. This is because they don’t have worry about how to provide for their families in case of a long illness or death. Instead of worrying, employees will have more energy and be more engaged with their jobs.
3). Saves Employees Money
Group life insurance is generally inexpensive for companies to buy; however, it can be a costly investment for your employees if they buy it on their own. With affordable life insurance, you can choose to pay all or part of the premiums.
In addition, a group life policy is a way to keep insurance premiums more affordable for employees. The reason is because with a group, the risk is spread to the entire group, rather than being based on an individual.
4). Employee Assistance Programs
Many group life insurance packages come with a policy that may include an employee assistance program. These programs generally offer a range of services such as how to stay healthy, online knowledge hubs and apps with information and advice, bereavement counseling and more.
Employees can use the services when needed; these are a great addition to your employee benefits package.
5). No Medical Exam Required
Group life insurance policies generally don’t require a physical exam, while individual policies often do. This way, even those who may have underlying health issues can have affordable life insurance policies. They can’t be denied coverage under an employer group life policy. In this way, you’ll be providing those employees with a great financial benefit they wouldn’t have otherwise.
Things to Consider When Buying a Group Life Policy
Now that you’ve reviewed the benefits of buying a group life policy for your employees, let’s take a look at some of the things you’ll need to consider before buying the life insurance. You’ll want to make sure the policy is a good fit your business and employees. Answer the following questions to help determine the best type of life insurance for your company:
- Will your company pay the entire premium, or will the employee? Can the premium be paid by both the company and the employee?
- Will the company allow employees to purchase additional coverage or raise the coverage level?
- What type of group life insurance policy do you want to offer?
- What are the additional benefits would you like to offer (such as an Employee Assistance Plan, etc.)?
- Will employees be covered automatically, or will they opt-in voluntarily?
- Will the policy cover all employees or only some?
- How will the policy be handled when an employee leaves the company? Can it be converted into an individual life policy?
- Will it be possible to add an option to include spouses and partners on the policy?
- Does the policy include Funeral cover? Funeral cover is usually paid before the Life benefit to help cover the cost of the funeral. This is helpful as it can take several weeks for Life policies to be investigated and paid out in full
These are a few of the considerations you’ll need to work through when looking for a group life policy for your employees.
As you can see, offering a group life insurance policy to employees brings the company and the employees many benefits. A group life policy will give your employees peace of mind, while making it easy for those who have pre-existing health issues to have affordable life insurance.
Not only that, but you’ll attract top talented job candidates, and the company will have a lower employee turnover rate by offering great employee benefits.
Group life insurance can be a valuable investment for both your company and your employees.