Smart employers recognize that offering valuable benefits to employees is one of the best ways to attract and retain highly skilled, dependable workers. That’s why we often discuss the value of offering group health insurance in our blogs.
There’s another terrific benefit that you can provide to your employees, and it’s easier than you probably think. A group term life insurance policy can be issued to people who have a common interest or association (such as an employer), and gives this group of people convenient and affordable access to necessary life insurance coverage.
There are many reasons to consider a group term life insurance policy, but they mostly fit into the following categories.
This might be the only life insurance policy your employees have. Whether because they simply haven’t addressed this need in their lives, or because individual policies are too pricey, some of your employees might not have a life insurance policy at all. Enrolling in a group policy can provide a unique benefit to these workers.
Term life insurance provides a guaranteed benefit. You select a policy based upon a desired benefit amount, and that “death benefit” is guaranteed to beneficiaries in the event of the covered individual’s death. This provides your employees with some security, knowing that their loved ones will receive a certain degree of financial assistance in their theoretical time of need.
Premiums are tax deductible. You can choose to pay your group term life insurance premiums for employees, or pass on that cost to them. But if you pay the premiums, you can deduct them as a business expense on your taxes, as long as the value of coverage is less than $50,000 for each individual. In other words, you get rewarded for making choices that help you attract great workers. It’s a proposition that benefits you in multiple ways!
Premiums are very affordable. Group term life insurance is an inexpensive way to provide quality coverage for a surprisingly low price. For example, the monthly premium for a $25,000 policy (per employee) amounts to:
- $1.75 for 25 year olds
- $2.25 for 30 year olds
- $3.25 for 35 year olds
- $4.50 for 40 year olds
- … and so on.
As you can see, premiums do increase according to the ages of your employees, but a group term life insurance policy is not cost-prohibitive at any age.
For more information on a group term life insurance policy, give us a call. We can help you select a plan that offers true value to both you and your employees.