Life insurance is a popular employer-provided benefit that employees, especially those whose incomes support family members, can enroll in. Enrolling in life insurance allows the insured’s designated beneficiary to collect the financial benefit after the employee is deceased. Employers should consider offering term life insurance whether it be basic (100% employer-paid) or voluntary (100% employee-paid).
What is term life insurance?
Term life insurance is commonly referred to as the simplest form of life insurance. It provides insurance protection if the insured dies within the designated period covered by the policy. Then, the beneficiary receives a specific sum of money. However, if the insured dies outside of this window, the sum is voided, and the beneficiary does not receive the death benefit.
Why employees enroll in life insurance
When an employee enrolls in life insurance it provides a sense of financial security. In the event that the insured passes away, there is a degree of comfort in knowing their family will be protected. The beneficiary will receive money that can be used in any number of ways. The money can be used to supplement the lost income, add to the beneficiary’s retirement funds, pay off debts, or cover daily living expenses.
Why employers offer life insurance
Employees who worry over the financial security and future of their families are not as productive as employees who feel financially secure. Employers who offer life insurance could see higher productivity from participating employees.
Life insurance policies are typically inexpensive for employers as group life insurance premiums are much lower than individual life insurance policies. Life insurance can also be offered as a voluntary benefit, costing the employer no money.
Offering this insurance is not only budget-friendly but also helps retain employees and stand out against companies that do not offer it. If you have any questions, please reach out to your dedicated Creative Benefits, Inc. team member.