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Many companies offer what is called group life insurance. This can be a very cost-effective method of attracting more prospective employees and retaining existing employees.
Why Is it Important to Offer Group life insurance? Nowadays, employees want more than merely a paycheck from their employer. During one survey conducted by the Wall Street Journal, employees were asked if they would prefer to receive a raise and lower benefits or retain their existing benefits with no increase in pay. Surprisingly, 56 percent of the respondents indicated that they would prefer to retain their benefits, even though they would not receive a raise. Employers should take note of this. They need to realize just how important it is to offer a competitive benefits package to their employees. Providing group life insurance will attract new employees to your company. Another benefit is that it will create loyalty within your company and boost the morale of existing employees. Who is Covered by Group life insurance? Group life insurance can cover new associates and employees as well as existing ones. The majority of group life policies also include an option for additional benefits that employees can choose to purchase at a reduced rate. Therefore, as an employer, you can offer multiple types of group life insurance plans while still paying a minimum premium. What is Different About Group life insurance? In most cases, it will be less expensive to purchase group life insurance than individual life insurance policies for your employees. You are able to buy in bulk which lowers the premium rate and enables you to take advantage of bulk insurance rates. The reason is that insurance agents require less time and paperwork to process group life insurance than many individual policies. Therefore, insurers are able to offer lower rates for group life insurance policies. How do Employers Benefit from Group life insurance? There are various benefits to employer that decide to purchase group life insurance for their employees. First of all, no medical examinations are required for policy holders to qualify for insurance coverage. This means that certain individuals will be able to receive insurance coverage through your company’s group life insurance plan even if they wouldn’t qualify for an individual insurance policy. Individuals who suffer from a serious medical condition or chronic disease will also find it much easier to obtain life insurance through your company. As a result of existing insurance coverage, many employees may decide to remain with your company. You’ll not only attract a greater number of new employees with a group life insurance plan, but also retain hard-working, loyal employees. What Additional Benefits Does Group life insurance Offer? Tax Deductible: Group life insurance is tax deductible because it is part of the wages you pay as an employer. You can use these tax-deductible benefits to create enticing employee packages that increase work productivity and morale. Customizable: Group life insurance policies can be completely customized to suit the needs of your company. For example, you can choose a group life insurance plan that is based on a number of years with the company or on a per salary basis to suit your employees. Waiver of Premium: You can also choose to purchase a group life insurance policy that includes a Waiver of Premium benefit. This enables employees who become disabled or seriously ill to maintain their group life insurance coverage without paying for the premium. Employees appreciate this security and will often reward it by remaining loyal to your company. As you can see, offering a group life insurance package to your employees is very beneficial. It will enable you to attract new employees, retain existing workers, and increase employee morale and work productivity. If you don’t currently offer a group life insurance plan in your employee benefits package, now is the time to do so! |
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