Offering Life Insurance as an Employee Benefit
Life insurance is one of the popular employee benefits for both, business and its employees. Life insurance as an employee benefit is optional, but both you and your employees can benefit from it. It not only offers peace of mind to your employees but is also lighter on their pockets. Life insurance plans are relatively inexpensive for business owners as they insure a group of people as a whole instead of individual insurance. Insurance premiums are lower for group insurance plans than individual insurance premiums. This is because group life insurance for employees is less risky for the insurance provider.
This article will walk you through the top benefits you can enjoy by offering life insurance as an employee benefit.
Life insurance policies are inexpensive
As it is mentioned above, lower premium costs are one of the key benefits of life insurance as an employee benefit. When employees are insured as a group, this type of insurance is less risky for the insurance sellers. Such plans are based on the overall risk of the group. That’s why the risk factor is lower. As employee insurance is usually bundled with health insurance, associated costs are lower than the actual. This is the reason, you as an employer should be offering life insurance as an employee benefit not only to ensure their safety at the workplace but to reduce workplace accident costs to a great extent.
It helps improve employee retention, recruiting, and morale
A life insurance plan with enough coverage can mean a lot to your employees. Especially if they are married and have kids. Most of job seekers look for life insurance as an employee benefit when they are searching for an ideal job. This is the reason; you can stand out by offering even a basic life insurance plan to your employees. It boosts employee morale, and retention rate as well. It also makes you an ideal choice for desirable job applicants.
Enhanced employee security and peace of mind
The financial security of employees is directly linked to their higher productivity and performance in the workplace. Experts say that when workers spend time and energy on the job while worrying about financial issues and family problems, they are less productive and out-of-focus. You can provide your employees with greater financial security and peace of mind by offering life insurance as a part of the benefits they will be enjoying while working for you. When they are less worried and are focused, they provide their 100% to make your business grow greatly. Life insurance plays a significant role in overall financial health and security. Workers who are protected with life insurance plans by the employer, know that their families will be paid in case of a workplace accident or any other unforeseen incident.
Insurance coverage can be used by beneficiaries for several reasons like:
Replacement of lost income
To cover basic expenses
To pay off debt or fulfill final expenses
Or to fund the education and other expenses of their child.
Money obtained as a life insurance coverage financially protects families of your employees when they are no more with their families.
To enhance company culture
When life insurance has been added to the list of employee benefits, it gives your employees a solid reason to stay and work for you longer. It can significantly enhance the company culture and employee retention rate. Life insurance as an employee benefit also attracts new talent as it sets you apart as an ideal employer. It also shows how you value your employees and their contribution to your business. They become more loyal and honest with your business to provide you with better performance and increased overall productivity.
Providing your employees with life insurance as an employee benefit is a great gesture not only to protect them financially but to enhance company culture and stand out among other employers in the industry. It makes you an ideal employer for job seekers and helps you attract top talent without spending a lot of bucks on job ads. Hence, you should partner with a reliable and trustworthy life insurance company to get enough coverage at lower rates.