An employer provided group term life insurance policy may be one of the most important employee benefits you can provide for your company’s people. At the same time, it is an extremely affordable way to create a heightened sense of loyalty among your workforce.
In previous articles, we discussed how crucial it is to provide the best benefits possible in order to attract the best employees in your area. I cannot tell you enough how important it is to prospective employees that you can bring more to the table than the competition.
Think About It… What if I were to tell you that there’s an extremely affordable way, usually under $5 or less a month per employee, to provide a huge benefit that can make a real difference in their lives and lives of their loved ones?
Offering this perk will make your employee benefits package more competitive and increase loyalty among your employees. You will also establish your reputation as a business that cares about its employees, which in turn shows you care about the community you are doing business in.
Good Life Insurance can be Hard to Get!
Doing the research and the legwork to find good life insurance coverage on an individual basis can be a daunting task. Strict underwriting policies for individuals with health conditions or smokers can be hard to find. If policies are found, they will more than likely cost a lot more than a quality Group Term Policy that your company can easily provide, usually free from underwriting. What an easy way to enrich the lives of your most valuable asset, your workforce.
This Small Investment Can Produce Big Results.
As mentioned earlier, the vast majority of employer-paid group term life insurance policies have a price tag of less than $5 a month, usually for $15,000 in benefits or more. It can also be a tax write-off for your business as long as the death benefit you are providing does not exceed $50,000. (Disclaimer: I am not a tax expert and this is not meant to be definitive tax advice as laws change regularly. Please consult with your Comptroller, CFO, or accountant.)
There is Room for Extra Added Benefit.
Many insurance companies will couple a company provided benefit with an optional voluntary benefit which can usually be added without any underwriting. These policies can often provide up to $100,000! Employees’ spouses and children can be easily written into an employee’s policy to protect them if they suffer from their loved ones passing.
Many company group term life insurance policies are Non-Selective. Most people would jump at the opportunity to get such a large amount of coverage, regardless of their tobacco usage or a person’s current health status.
Easing the Hardship of Loss.
Losing a husband, wife or child can be emotionally devastating. Adding financial disaster and grief on top of this can easily be too much for a person to bear. As an employer, you have an excellent opportunity to help provide a way to make sure your employees’ needs are met. You will also have the satisfaction of knowing that their families will be taken care of when they are gone.
Passing away without leaving anything to your loved ones is an all too common tragedy. Often times families have to turn to one another and pull the funds together to be able to afford the final expenses of their loved one. Many times, grieving surviving family members are forced to finance or sell their possessions. Final expense costs can easily add up to $10,000 or more!
How many of us have felt the pressure of being the leader and provider for our families? The lack of life insurance protection can be a tremendous burden to face. Being responsible means that you make sure your spouse and children are taken care of in the event of your untimely passing.
Having $15,000 to $20,000 of coverage automatically upon employment eligibility is a tremendous relief. We all want to do the best to help our employees’ futures.
In the end, we know that our businesses would not be what they are without solid employees. The heartbeat of every business is its workforce.
Would You Like to Foster Loyalty with Your Employees?
There have been many discussions within the business community over the past few years regarding employee retention rates, job hopping, and how to grow a loyal workforce.
Having a good life insurance policy in place may help your employees to decide in favor of staying when an employee comes to a career crossroad and weighs out their options, perhaps considering accepting another job offer. I think we can all agree that good help is hard to find. Doing our best to make sure they stay is crucial to running a successful business.
Which Company Paid Group Term Life Insurance Programs are Best for My Business?
There are many options available and different companies to choose from. This is why having a licensed broker that has access to many competitive quotes is important. Only you will know what products on the market will best fit the needs and wants of your employees. As well as what your business is capable of doing for them. A great broker can show you the best options available for your business. They can help make the best educated choice according to your needs.
This discussion has been solely about company provided group term life insurance. In future articles, we will explain and help you understand the different types of life insurance policies that are available.
You need an experienced broker or agent that has handled claims many times. You need someone who has a complete understanding of the handling of the claims process. It will eliminate any undue hassle and stress on your administrative staff, whose time is already limited and valuable.
You need an honest broker or agent when representing your concern for the lives of your employees.
Look no further, I am that Broker/Agent. Request a quote or contact me to set up an appointment to learn how we can help you bring this benefit to your employees.