Providing supplementary life insurance benefits to your employees is a great way to set yourself apart from the crowd, but with so many policies to choose from how do you know which one is right? Here are a few things to consider when choosing life insurance policies for your employees.
Do You Want Whole or Term Life Insurance?
Whole and term refer to the period of coverage. Whole insurance is permanent and provides coverage for the rest of your life while term provides coverage for a specified term, usually 10, 20, or 30 years. Each type of policy has its advantages and disadvantages, term insurance is generally seen as cheaper and easier to understand while whole is more complicated but provides a wider variety of options like borrowing against the account or surrendering it for cash if you no longer need it. Typically businesses offer a group-term policy, where the term ends when employment is terminated.
Do You Want Riders?
Riders are additional features you can add on to an existing plan. There are many options when it comes to riders. For one example, if you have employees who take frequent business trips you could offer business travel accident insurance on top of your standard insurance plan. With business travel accident insurance, if the employee is killed while traveling on business the beneficiary will receive additional benefits. That's just one rider out of many, your insurance agent would be able to give you a complete picture of your available options.
What's the Right Amount of Insurance?
One of the most important aspects of a life insurance policy is the amount of coverage. With this you have a few different options ranging from a set amount (i.e. $50,000 for each employee) to a percentage of the employee's total yearly salary. If you have many low-skilled employees with low salaries it may be enough to provide a small set amount, but employees with higher yearly salaries would likely be more satisfied having their coverage based on their pay.
Will You Need Enrollment Help?
An amazing benefits package is only valuable if your employees know about it. Some insurance providers will offer services that assist you in educating your employees about their benefits and enrolling them. If you have a large workforce or an overworked HR department it would pay off to find an experienced provider who can give you this assistance.
Offering competitive benefits is key to retaining talent, and Summerlin-Roberts can assist you in finding the right supplemental life policy to make your benefits package stand out from the crowd. Please contact us today to find out more about offering supplemental life insurance as a benefit.