Offering life insurance policies for your employees can be very beneficial for you as a company. Your employees are your best assets, and they are the lifeblood of your business.

One way to show them you care is to offer them a life insurance policy that will benefit them and their family should any event outside of their control take place. If you are not currently offering a life insurance policy and you’re on the fence about it, you likely need more information.

Here are some of the major benefits you and your employees will receive from a group life insurance policy. Once you know the benefits, you can decide whether you want to offer this to your employees.

Make Your Company Attractive

One benefit of life insurance that you may not have thought about is that it can help you attract top talent. When you offer life insurance as a part of the compensation package for your employees, it is very attractive to potential employees.

When people understand they will get benefits for themselves and their families, they are more willing to stay with a company or even apply for a job there. Therefore, offering a comprehensive life insurance policy is a very effective way of obtaining and retaining excellent employees.

Even the most basic of insurance policies will benefit you and your employees.

They Are Affordable

Group life insurance policies cost less than individual health insurance policies because group life insurance companies are a lot less risky for your company and insurers.

Your insurer will look at the overall risk of the entire group to decide how much you will pay. For most companies, the overall risk factor is very low. You may even be able to get group health insurance as well. This can significantly reduce the administrative and sales cost of the policy.

What Coverage Provides

Life insurance coverage can make your employees feel a lot more secure. You may wonder what exactly a life insurance policy covers. A good life insurance policy for your employee will serve as replacement income should an unexpected tragedy befall an employee.

Life insurance can also cover living expenses and state taxes that the employee has left behind. The money can also help with a child’s education or even supplement retirement savings. As you can see, there’s a lot that a group life insurance can offer an employee if something tragic happens.

Customize Your Plan

If you decide to offer your employees life insurance, there are some things you need to decide when creating a group life insurance policy for your company.

Sometimes employees can purchase additional coverage or even raise the level of coverage that they have in a group insurance plan. You need to decide whether you have enough leeway within your budget to accommodate this.

There are some cases where you can allow your employees to pay some of the premium. If this is the option that you have put in place for the life insurance policy, then you can put in a clause for increased premiums, as long as the employee will pay.

It’s hard to believe that most employees will not want to opt into a group life insurance policy paid for by a company, but sometimes there are exceptions to the rule. You’ll need to decide whether you want to give employees the option to opt-in or opt-out of the life insurance policy you have in place for your company.

On the upside, if they decide to opt-out, it means that you will pay less. However, it might be a signal that someone is not completely committed to your organization and does not see themselves staying for the long term, so they see no point in getting life insurance coverage.

While good life insurance coverage is one of the main reasons many people stay long term with an organization, there are inevitably going to be some employees who leave.

You will need to decide how you’re going to handle this and how coverage can be transferred or transitioned. This is something you will need to discuss with your insurance company.

Finally, you may decide that only certain employees receive life insurance. That’s something that you’ll want to look at carefully before deciding.

Get Your Company on Track

Offering group health insurance plans is a great way to make your employees feel protected. A group life insurance plan that is beneficial to your employees’ family is always a welcome asset to any organization.

A group life insurance policy can make your company very attractive to employees with a high level of skill. When you offer this as one of the key features of a benefits package, you are likely to receive more applications from candidates who are looking for a way to safeguard themselves and their families. These employees tend to be loyal and stay with your company for a long time.

Reach out and we’ll be happy to provide more information about group life insurance for your business.