Do you offer group life insurance to your employees? If not, you may be neglecting probably the most cost effective way to offer an attractive benefits package to current and potential employees.
The employees of today expect to get more than just a salary for their work. The Wall Street Journal recently conducted a survey in which they asked participants if they would choose to either not have a pay increase but keep their current benefits, or get a raise with a decrease in their benefits. Fifty six percent of the participants state that they would choose to keep their benefits. The results from the study shows just how important that employers offer competitive and attractive benefits packages to their employees in conjunction with decent salaries.
One of the various benefits that an employer can offer is group life insurance. It can help to attract new employees and also increase the morale and loyalty of current employees.
The policies for group life insurance can be applied to either new or existing employees. In addition, many of these policies can offer employees extra benefits at discounted rates if they choose to pay for the extra expense. This helps to make it easier for employers to offer their employees more than one plan, but keep their premium costs low.
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Group life insurance is usually less expensive than individual life insurance. There are several reasons for this. One reason is due to collective bargaining- it is basically buying in bulk and everything is cheaper when you buy in bulk. It requires less time to sell to each individual and there is less paper work involved. These are the main incentives that insurance companies have to offer lower rates for group life policies.
Employers particularly benefit is a unique way from group life insurance. There aren’t any mandatory medical tests to qualify. For some individuals, this could be the difference in being able to get insurance or not. Having a chronic disease can make qualifying for life insurance very difficult. The ability to be able to get life insurance through a company plan could be sufficient for persuading good employees to stay with the company.
Other Group Life Insurance Benefits
- Group life insurance is included with wages paid so it is tax deductible. Adding or improving your employee benefits package can not only provide you with tax write offs but also increase worker morale and productivity.
- Some insurance plans offer a benefit called Waive of Premium. If an employee becomes totally disabled, the individual can continue with the coverage for group life insurance without being required to pay their premiums. This is another tangible way to show appreciation to your employees.
- A group life insurance policy can be customized to meet your particular company’s needs. Many insurance plans offer you the ability to customize for employees based on factors such as their salary or number of years they have been with the company.
One of the main ways to attract and retain quality employees is through your company’s benefits package. The more you can improve the better you will be able to hire and retain your best employees. You should take the necessary steps today to add group life insurance, if you have not already done so, to your benefits package.
