As Q3 begins, many companies around the country are starting to prepare for open enrollment. That means it’s time to not only evaluate your organization’s current benefits, but it’s also prudent to research new lines of coverage your employees could find valuable.
In addition to dental and vision benefits, group life coverage is a popular ancillary option for many companies. It offers valuable protection for your team, providing a financial support system for families of employees who experience a debilitating accident or pass away. Here are some of the ways group life benefits can help you and your employees.
It helps you attract and retain talent
Your company wants to hire talented people and, hopefully, keep them. Employee benefits — such as group life — help you do so. A strong benefits package shows prospective and current employees that you care about their life beyond the office. A Glassdoor survey revealed that 63% of job-seekers cite employee benefits as one of the most important factors they look for in job postings — second behind only salary1. Another survey by OneAmerica found that among employees who work for a company that does not offer life benefits, 59% said they would purchase it from their employer if it was an option2. The bottom line: Group life benefits show you put employees first, helping you build a foundation of trust that gets people excited about joining your organization and sticking around for the long run.
It provides security for employees and their families
Group life benefits are especially important for employees looking to protect who they care about most: their families. These plans give employees valuable peace of mind that their loved ones have financial protection in a worst-case scenario. If an employee passes away, designated family members — called beneficiaries — receive funds to help them replace lost income, afford living expenses, pay for their children’s education, and more. Accidental death and dismemberment coverage, a supplement to group life policies, can also help employees pay for costs incurred from dismemberment (e.g., loss of a limb or bodily function such as eyesight).
It gives you a low-cost employee benefit to offer
Cost is understandably a critical deciding factor for HR professionals who are weighing employee benefit options. Fortunately, group life coverage can be a budget-friendly benefit. Not only can you get lower premiums by offering group benefits instead of individual coverage, but it’s also rare to pay out life insurance claims compared to healthcare benefits. These savings can be passed on to your employees. Companies may also be eligible for tax benefits by offering group life benefits to employees3.