Why Companies Should Offer Supplemental Life Insurance

By hrlineup | 12.12.2019

When it comes to employee benefits, some employers offer a life insurance cover for their employees, which is a great benefits package that puts these employers on the edge. However, for employees with a spouse, children and other dependents plus other forms of expenses such as education, mortgage and other debts, a life insurance for employees is usually not sufficient to give the employee the financial stability he deserves.

There is a study that shows that more than 65% of employees today need an additional coverage beyond what their employers are offering and this is where supplemental life insurance comes in. This type of insurance coverage is meant to supplement the life insurance cover offered by an employer and it can enable employees safeguard the financial security of their families.

The problem is that only about half of employers in the country are offering these supplemental life insurance plans today. Why should companies be required to offer them?

  1. Their employees deserve better: The mental health of your employees should always matter as this is what determines their day-to-day productivity. An employee will for instance be stressed up if they know the money they have saved can never guarantee their families financial security.
    Great peace of mind comes when one is sure their families can easily handle their personal debts, medical bills and funeral expenses in case of his demise. By offering a supplemental insurance cover to your employees, you are easing their mind for better output in your business.
  1. Employers do not need to spend more to offer a supplemental employee life insurance cover. This will not increase your employee benefit plans’ budget; therefore there is nothing the business loses in the end. Since the cover is usually an opt-in and it is usually chosen by individual employees depending on their situations, employers can always offer it as an option without incurring additional expenses. Employees can then customize the coverage to their own needs and financial responsibilities.
  2. Employers do not need to overload their human resources with more workload since there are group carriers who enroll employees to such insurance coverage. All you can do is allow for an on-site enrollment session managed by an insurance exert, or allow for a webinar led by the carrier, which will then be followed by an online enrollment.
    Most carriers offer customized enrollment services for such insurance plans, for every employee.
  1. A supplemental employee life insurance cover can be a great way to promote employee satisfaction and retention. It can also increase employer’s chances of attracting the best talent. Since almost everyone is offering an employer life insurance, you can set yourself apart by offering a supplemental cover for your employees.

A supplemental life insurance through employer is a great way for employers to show their concern for their employees. It is a chance for employers to show how much they are willing to go to give employees better lives at no extra expenses.