Many companies offer appealing benefits packages to their employees. An attractive component of these packages is often the opportunity to enroll in employer-sponsored life insurance. This popular benefit option may help with employees’ financial security by enabling them to plan for their futures, as well as make them feel more secure knowing their companies are invested in their well-being. According to the Consumer Financial Protection Bureau, when employees can lessen their financial worries, such as via life insurance, they tend to be more productive on the job. As such, business life insurance is a win-win for both employer and employee.
What Life Insurance Might a Business Offer?
Companies that offer life insurance to their employees most commonly provide group-term life insurance. For life insurance offered through an employer, the term may only be for the duration of an employee’s employment—once an employee quits or retires, the benefit term ends. Spouses and dependents aren’t typically covered under an employer plan, although some employers may offer family members additional voluntary coverage. When establishing a group-term life insurance policy, employers decide who pays for coverage and employees can choose whether or not to participate.
Benefits of an Employer Plan
Life insurance is typically an affordable benefit for companies to offer since group life insurance usually spreads risk across many employees, which helps keep premiums low. As such, life insurance offered through an employer typically enables an employee to acquire life insurance at a reduced cost.
Another significant perk of most group-term life plans is that these policies don’t require individual health assessments and can therefore be offered to employees without the need for medical exams. If an employee chooses to obtain their own life insurance through means other than their employer, their premium may be based on their medical exam results and coverage may even be denied entirely.
A Benefit Worth Exploring
Life insurance offered through an employer is a benefit that’s worth consideration. Life insurance may not only help employees with their financial security, but can also keep them invested in their companies. In addition, these arrangements generally provide an affordable and reliable way to get life insurance coverage. The Peterson Agency can discuss business life insurance and explain how an investment in a company policy may benefit you. Call 336-227-0154 to speak with an insurance specialist.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.