Without your employees, there would be no business. They are an essential part of your company. Besides providing an excellent workplace and fair wages, showing that you care for your employees is essential.
A great way to do that is by offering group life insurance coverage. This can provide financial support for your employees and their families in an unfortunate time of need.
What Is Group Life Insurance?
Group life insurance is a type of term insurance. It allows for a single insurance contract to cover many people. A company often buys this type of insurance to offer employees a benefits package. Group life insurance is also a tax-deductible business expense. Therefore, it can provide your employee’s families with a tax-free payout. In addition, if an employee passes away, or in some cases, becomes injured during their employment, they are covered by this insurance. Purchasing group life insurance through companies like Scotia Life or RBC means you may bypass the need for individual medical questionnaires. You also often get a better deal per employee than purchasing individual insurance policies.
A person is insured under this contract for the duration of their employment at your company.
Why Should I Buy Group Life Insurance?
Life insurance can make your small business appealing to employees. People always seek security when looking for work. Therefore, offering life insurance can be seen as an incredible perk attracting talent to your company. In addition, the peace of mind given to your employees through life insurance will ensure that your staff feels appreciated. This can, in turn, allow for a better employee-employer relationship.
Furthermore, group life insurance policies are usually not medically underwritten life insurance. Individual policies need the applicant to give details of their health status and lifestyle. This will then determine the size of their premium. Companies can deny a person insurance based on their lifestyle or health conditions. Group life insurance, however, is rarely medically underwritten. This guaranteed insurance can be an attractive incentive to work for your business. It can also increase the company loyalty of existing staff.
Some insurance providers may also include extra features in their policies. This can include bereavement support for the employee’s family should the worst happen or financial advice helplines. This support could be hugely helpful for your employee’s family in a tragedy. It can also allow you, as their employer, to ensure that they are supported emotionally and financially.
What Employees Need to Know and Pros and Cons of Group Life Insurance
Being insured under the umbrella of a work-sponsored group life insurance has pros and cons. Let’s look at the positives first:
It’s free for employees
Usually, employees don’t have to pay out of their own pockets.
Easy application process
There will be no paperwork involved because your office’s relevant department will take care of all formalities.
A group life insurance policy tends to accept the whole group without as many requirements as an individual policy. As a result, even employees with severe medical conditions will be taken.
With that covered, let’s dive into the cons:
It comes with a string attached
Because your employer purchases it, it’s as good as their job. The coverage will be active as long as employees work with your company.
Lack of Options
There aren’t a lot of carriers or policies to choose from. So the company decides the package that fits their budget, and all an employee can do is accept it with a thank you.
Group life insurance is a reasonably affordable way to increase employee benefits. It can also ensure that your small business remains competitive in the job market. Life insurance can also increase employee retention and improve their well-being, allowing for better employee relationships. If you’re considering group life for your business, consider speaking with an insurance brokerage like Dundas Life or others to help find the right policy for your team.