Group Life Insurance
Why is Group Life Insurance Important?
1. Employees will have peace of mind and appreciate employers who offer life insurance.
In case the unfortunate happens, it is imperative for employees’ dependents to have financial protection from life insurance. Also, employees will have lower premium payments because they will benefit from being rated on a group basis.
2. Life insurance is yet another important benefit to attract and retain talented employees.
People pay extremely close attention to benefit plans offered by employers. A great benefit package can be the difference between attracting talented employees and losing them.
3. Group life insurance policies typically have “Guarantee Issue” coverage, which can be a huge benefit for employees struggling to find life insurance because of health conditions.
Employees can elect up to the Guarantee Issue amount of life insurance without having to answer medical questions. This is a tremendous benefit that allows employees to obtain life insurance even if they have underlying health concerns.
4. Employers who offer life insurance can fully deduct their contributions to group life insurance plans as a business expense.
However, if life insurance is offered to employees on a voluntary basis, the premium is not deductible because the employee takes on the full cost.