Does your company offer group life insurance? If not, they might be ignoring one of the most cost effective ways to make their benefits package more attractive to potential and current employees.
Employees have come to expect more than a salary from their employers. In a recent Wall Street survey, participants were asked if they would rather have no pay increase but retain current benefits, or get a raise and see benefits decrease. Fifty six percent of respondents said they would rather keep their benefits and sacrifice an increase in pay. This illustrates how important it is for employers to offer a competitive benefits package to their staff members.
Among the many benefits an employer can offer, group life insurance serves as an excellent way to attract new employees. It also increases the morale of current employees and fosters a better sense of loyalty within the company.
Group life insurance policies can apply to existing or new employee.Family members can often included as well, with a nominal amount paid by the employee. Most policies also offer extra benefits allowing employees to choose at a discounted rate. This makes it easy for employers to offer more than one plan, while paying a minimum amount for insurance premiums.
Group life insurance coverage is often less expensive than individual life insurance for several reasons. First of all, group life insurance is a form of collective bargaining. It involves less paperwork for the agents and less time in selling to each individual. These incentives are extremely helpful in order to enable insurance companies to offer lower rates on group life insurance policies.
Employers benefit from group life insurance in a unique way. There are no mandatory medical examinations in order to be qualified. For some, this is the difference between being able to obtain life insurance and not being able to qualify for coverage. Chronic diseases make getting life insurance a lot harder. The fact that people can obtain life insurance through their places of employment could be enough of a reason to persuade hard working employees to stay in their positions.
Additional Benefits of Group Life Insurance
·       Since group life insurance is part of wages paid, it is tax deductible.Adding benefits to employee packages may improve productivity and morale.
·       Many plans offer a waiver of premium benefit. If an employee is totally disabled, they will be able to continue group life insurance coverage without paying the premiums. This is yet another tangible symbol of a company’s appreciation for its employees.
·       Employers can customize group life insurance policies to fit company needs. Many plans can be tailored to meet specific employees.
A company’s benefits package is the main attraction to the work force. Adding to it will attract a better, more loyal group of employees, and help retain the hardest workers.
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