Providing group life insurance as an employee benefit can offer several advantages to your company. When employees receive such benefits from their employer, it can lead to greater loyalty towards the company, increased productivity and higher employee retention. It also helps to attract better talent. Moreover, your company and employees benefit from the lower premiums for group policies.
If you are wondering whether a group policy can provide any added benefit over an individual life insurance policy, the answer is yes, they can. Here are some reasons why your employees will appreciate group life insurance, even if they already have an individual policy.
1. Insurance Coverage at a Lower Cost
Compared to an individual life insurance policy, the cost of group coverage is lower despite offering similar coverage. If an employee already has an individual policy, this will provide them added coverage at minimal cost, while they serve at your company.
2. Health-Based Pricing
There is minimal or no medical underwriting for group life insurance policies. Most individual policies are medically underwritten.
3. The Employer is the Policy Holder Not the Employee
In case of an eventuality, it is the company that claims on behalf of the employee’s family. This is a huge relief from all the hassle of claim submission. Moreover, in the event of the sudden demise of an employee, the insurance company can cover the expenses for the repatriation of mortal remains too. This also includes economy class airfare for an accompanying person.
You can provide insurance benefits to employees, based on their designation and income. Alternatively, you can offer a fixed policy for all employees. This is a great way to reward deserving employees.
Along with providing financial support to your employees after retirement, group life insurance can offer you tax benefits. You can support employees financially if they are diagnosed with a critical illness. Thus, a group insurance policy not only helps you to fulfil ethical obligations towards employees, but can also save company expenses as well.