Why Top Companies Should Consider Life Insurance As Employee Benefit

If you run a business, it would help if you offer a competitive insurance package to your employees. Doing so allows you to attract the top talents in the industry.

But who can say no to a better quality of life, right?

Mind you; an employee package is what can set you apart from other companies. Because other than salary, they would want to know what additional perks they can enjoy by working for you.

This explains why it would be ideal to offer life insurance to your employees. If you are still not convinced, we have listed down six reasons you should consider adding life insurance to your employee package:

To Attract And Keep Quality Employees

Other than the monthly salary, job seekers tend to look for employee benefits when applying. An attractive benefits package includes a hybrid insurance policy.

It is incredibly helpful when you want to recruit new employees. You’ll also have a better chance of getting better candidates as well.

Luckily, offering a life insurance policy to your employees doesn’t have to expensive. Insurance providers offer group rates that make it affordable to provide insurance to your employees.

Another option is to share the expense with your employees. It’s called voluntary life insurance.

Lower Employee Turnover Rates

When employees feel that you’re offering a valuable benefits package, it’s highly likely that they’ll stay with your company. That’s because a generous employee benefit allows them to support their family better.

Offering life insurance offers a huge safety net that you can provide for your employees. Doing so ensures that their family will be well cared for if the employee passes away. 

To Improve Your Company Culture

Creating a strong company culture is fostering an environment that will bring out your core values.

Great company culture can also play a role in the satisfaction of your employees. Doing so makes your employees feel that they belong, and the organization is valuing them.

That’s why including life insurance as a benefit for your employees plays a crucial role in shaping your company culture.

It merely shows that you’re putting your employees first. Also, you’re showing your employees that you want to provide them with a secure financial future.

It Is Actually A Budget-Friendly Option

If you’re thinking of offering life insurance to your employees is out of your budget, then think again.

There are a lot of affordable insurance options in the market. After all, you’re not just paying for your employees’ benefits but will also depend on your needs and goals.

Remember that group life insurance premiums will be based on the overall assessment of your company’s risk.

It brings group rates down by spreading that risk, offering you an appropriate coverage solution for your employees.

To Boost Employee’s Security And Peace Of Mind

According to the Consumer Financial Protection Bureau, employees become less productive when they worry about their families.

That’s why offering an excellent life insurance program is critical. It allows them to improve their financial wellness, giving them peace of mind to handle their family’s needs. As a result, they can focus on work and get things done.

Moreover, it would be best if your employees know that their insurance provider is a reputable company. After all, they would want a company that can help them reap their insurance benefits with ease.

This offers them peace of mind knowing that they channel their energy in completing daily tasks.

They and they’re loved ones can also use these funds which they see fit like:

• Replacing lost income
• Covering for necessary living expenses
• Pay for real estate taxes, household debts, funeral expenses, etc.
• Fund for a child’s education
• Supplement one’s retirement savings

To Increase Employee Productivity

When you offer benefits, you’re offering more reasons to care about your company and remain loyal.

As a result, they’re willing to work harder, leading to higher quality and greater productivity.

According to Insurance Quotes, approximately 57 percent of private employers provide more than the required benefits. For this reason, it provides benefits that place you above your competitors who don’t offer the same services.

Type Of Life Insurance You Can Offer

There are two main types of insurance policy that you can offer:

Term

This will cover the employee for a specific timeframe, depending on how long they’re working in the company.

You’ll provide a term life insurance coverage that will be equal to the employee’s yearly salary, and as they pay for the premium themselves. Also, note that premium term policies are generally less expensive. That’s because the insurance will last for a limited timeframe.

Meanwhile, permanent policies are more expensive since they offer extended coverage. It is further divided into:

• Basic term life. This package is employee-paid and offered for a specific timeline. It provides the employees’ loved ones essential financial provisions.
• Supplemental term life. An employee-paid package which allows employees to get additional protection they need.
• Dependent term life. Offers protection for the employees’ spouse, domestic partner, civil union partner, and children.

Whole

This will continue as long as the employee is living. Generally, this insurance type is more expensive since the employee will typically pay this premium.

Since this tends to accumulate over time, the policyholder could cash in before they pass away. Therefore, whole life insurance is already an investment in itself. Some financial policies still regard this as a bad investment because the return rate is usually low.

Over To You

If you’re thinking of expanding your company’s employee wellness program, consider offering insurance.

For your employees, it serves as a safety net. It gives them peace of mind knowing that they have a back-up plan if something unprecedented happens to them. Plus, they know that they are not a financial burden on their families.

Meanwhile, giving them peace of mind allows them to relieve some stress. Doing so enables them to focus on work and be productive.

Hence, including life insurance in your employee benefit can have a positive impact on your bottom line.

When you offer a competitive employee benefits package, you can attract top talents. This means you have the right people who can propel your business to succeed.