Since 57% of Americans with life insurance obtain it exclusively through their workplace, employers are now being relied on for life insurance. Group life coverage is often made available as part of a complete benefits package. This is an important offering, as it’s essential to many employees’ financial independence and peace of mind.
Offering group life coverage in your benefits package is not only good for employees’ financial well-being, but it will help your clients as well by improving the employee experience.
Group Life Plans Benefits for Employers
As a broker, you do everything you can to help your clients succeed, especially when it comes to providing the best packages that will help them attract and retain top talent. 68% of respondents in a 2018 survey by OneAmerica said they would enroll in group life insurance through their employer if offered. Life insurance may not be the most talked about employee benefit, but it is certainly an important one. It should be a core benefit offering alongside health insurance.
Essential offerings like this one help to eliminate employees’ financial stress, which can often impact their quality of work. Stress outside of the workplace tends to carry over into work, leading to lack of productivity, increased illness and decreased engagement. Easing these stressors will have the opposite effect.
By offering the most comprehensive benefits package, you’re helping your clients create more productive and focused work environments.
Group Life Plans Benefits for Employees
Buying life insurance on their own can be costly—rates tend to be much higher for individual policies than group ones. Group life coverage policies also don’t require a medical review, unlike individual policies. An unfavorable medical exam could potentially drive premiums way up, or even disqualify the individual. There are, however, restrictions when it comes to group coverage, so be sure to communicate them with you clients to help their employees avoid any issues.
Lastly, group life coverage is more convenient. Employees can pay for their premiums through seamless payroll deductions, eliminating any additional legwork or stress on their end.
As a trusted advisor, you can help your clients provide their employees’ with options that will benefit them in the long run. Group life coverage is exactly that.
Communication is Key
Due to its unsettling nature, not many people take the time to understand the importance of life insurance, which is why it’s especially important for brokers to encourage clients to teach their employees about the value of it. Once they understand how it could potentially impact their lives as well as their families’, they’ll be far more likely to take advantage of this benefit.
Education will not only boost participation, it’ll also help boost employee loyalty and support your clients’ hiring and retention initiatives.
Clarity is committed to helping you grow and succeed, and streamlining employee benefits for a smooth, comprehensive experience. Learn more on our brokers’ page.
Sources:
https://us.axa.com/axa-products/life-insurance/questions/what-is-group-life-insurance.html
http://www.roperinsurance.com/boost-employee-benefits-with-group-life-insurance/
