One of the most important elements of building an employee benefits program that is valued by employees is the inclusion of a group life insurance component. Most leading employers provide employees with basic life insurance paid for by the employer and the option to buy additional coverage paid for by the employee. Clearly, group life insurance is part of structuring an employee benefits program that can attract and retain the best employees.
There is another important point for employers to consider. For a significant number of Americans, employer provided group insurance is the only coverage they own. And if they do have an individual life policy, many times it is inadequate to provide all the coverage a family needs. Workplace life insurance can be an important lifeline for families in building some degree of financial security. Here are some facts to consider about life insurance in the lives of fellow Americans:
- Fifteen percent of husbands and 28 percent of wives have no life insurance.
- The percentage of married parents that believe their current life insurance protection is inadequate is 56 percent.
- 6 million households (ten percent of families with children under 18) have no life insurance or term life insurance protection.
- The percentage of families with dependent children that admit they’ll have immediate trouble with everyday living expenses is 22 percent. Another 26 percent say that if a primary wage earner dies they’ll only be able to cover expenses for a few months.
The evidence is compelling that employer provided life insurance coverage and additional life insurance options can play a vital role in protecting the well being of families. On a fundamental level, one could argue that providing employees with the ability to secure life insurance is simply the right thing to do.
Whether you are an existing client or a prospective Crichton Group client, we encourage you to speak with our employee benefit professionals to learn more about the very affordable life insurance options for your company and your employees.
Source: LIMRA International