7 things every boss needs to know about group life insurance
Group life insurance is becoming increasingly desirable for job seekers, with more and more companies offering the policy for their employees. Though group life insurance can be simple to set up, there are still a few things worth knowing so you can decide whether it is right for your business.
What is group life insurance, and how does it work?
Group life insurance is a policy available to businesses with at least two employees, which can cover the entire workforce. The business can choose a lump sum, often a multiple of the employee’s wages, to be paid to their loved ones in the event of their death. These policies are often customizable, so you can find one that suits your business. For example, you can choose how much is paid to the beneficiaries and whether to include all employees or just a selection of key workers.
How much does group life insurance cost?
The cost of group life insurance varies depending on the provider and the profile of your employees. Insurers will consider several factors, including age, gender, the type and location of your business, and the salaries. The cost will also depend on how extensive you want the coverage to be, and how much you want to be paid to an employee’s dependents. Once this has all been calculated, the insurer will offer you a quote for how much you can expect to pay.
The benefits to employees
Group life insurance can provide a range of benefits to your employees. Significantly, the cost of the policy to the employee will be low to nothing. Personal life insurance policies can be quite expensive, so having some protection at a fraction of the cost can be enticing.
It is simpler than individual policies
A group policy covers multiple employees under one plan, making it much easier to manage than individual policies.
It can encourage loyalty
A good group policy will give your employees peace of mind knowing that their loved ones will be looked after. This kind of support will make them loyal to your company, improve retention, and can make you stand out to job seekers.
It covers pre-existing conditions
As group life insurance covers multiple people, workers with pre-existing medical conditions will still be covered. An insurer might ask about employees with pre-existing conditions before giving you a quote, but there are no medical tests. This also means that the policy can be issued immediately.
Group life insurance is becoming increasingly sought after
Following the COVID-19 pandemic, more people are becoming acutely aware of their own health and are looking for ways to protect their loved ones. As a result, group life insurance is becoming more valuable. Offering such a policy could help you attract new employees as well as retain your existing staff.
Ultimately, group life insurance could provide a host of benefits for your business. You can customise it to fit your business and ensure your employees are getting peace of mind. Now that you know how useful it can be, all that is left to do is start researching to find the best policy to suit your needs.