Employers are finding it increasingly advantageous to offer a life insurance benefit to their employees. It has immense value for both the employer and the employee.
On one hand, the employer gets to attract and retain top-notch, high-quality workers. On the other hand, employees are made to feel secure in the knowledge that they are well covered in case of any fatal eventuality. Based on this, life insurance policies as a benefit have grown in popularity.
Interestingly, life insurance benefit has not always been this well received. A couple of years ago, it was quite difficult to convince employers and employees alike to invest in life insurance. Data released following studies commissioned by LIMRA in 2015 and again in 2017 put this into perspective.
The 2015 study found about 57% of adult Americans indicated that they had zero interest in taking a life insurance policy that year.
Contrast this with the findings made public earlier this year. It shows 58% of workers strongly feel that life insurance benefit was important and essential in their work environment.
Indeed, indicators show that life insurance benefit is more valued and desired than many other perks. It has recently come to be ranked in the same category with retirement plans and medical coverage/prescription drug benefits.
The increased interest in life insurance as a benefit has been enhanced by several factors:
Increased employee security and a sense of well being when they know that they have a life insurance policy in place. This appears to have a positive impact on productivity and profitability while also retaining top talent.
Improving attitudes toward the economy. Workers are more confident they can handle their share of the premiums.
Workers are becoming more sophisticated in their understanding of finances. This includes understanding the benefit of having a life insurance policy.
The Role of Financial Advisors in Helping Companies…
As a company considers offering Life Insurance as a benefit to employees, it is helpful to work with a financial advisor who can serve as an advocate within the company for broad adoption of the benefit.
Selecting the right financial advisor means working with someone who can help educate employees. (It important that the team has a clear understanding of the benefit and its advantages.)
This will also help the employees fully appreciate the value of what the company is offering through the life insurance benefit.
It’s always a good time to begin exploring your options for the benefits you offer and Life Insurance should be in the mix. Please call or Email us with questions and we’ll put you in touch with the best resources available.