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Which Life Insurance Should You Choose for Your Employees?

by Anil Kumar ~ April 23rd 2018

Every second family in America has a life insurance plan and almost everyone knows about the same. These plans greatly help loved ones to recover from the financial hardship after the departure of the sole breadwinner. Along with the individuals, there are life insurance plans to help the employee ensure a safe future for their loved ones. In this blog, you will learn what the insurance options for an employer and how can one get benefitted from the same.

If you are running a small business, you must be willing to expand your business and reach new heights of success. Providing a life insurance plan can be a great idea to retain your employees for long. You can offer an insurance plan to your employees to ensure their loved ones won’t have to suffer, in case the unexpected happens. This will create a sense of care and your employees feel grateful for the same. This feeling of gratitude will reflect in their professional duties and will work with a greater dedication to complete their duties under the desired time-frame. Let’s get to know a few important facts about life insurance for employees.

Who Can Get A Cover?

Now you are planning to provide a life cover your employees, you might be thinking who all should receive the insurance coverage. As per the laws for providing group-term life insurance plans, you can’t select employees voluntarily as it will reflect the sense of discrimination among the employees. You shouldn’t consider the employee’s eligibility based on their gender, marital status or responsibilities at the workplace. This means you will have to provide the same coverage to both male and female employees of your organization. If you are offering a coverage to the married employees with kids; you would also have to consider the single employees of the company. If the senior manager is getting some cover, the executives also are eligible for the same. So basically, you are supposed to provide equal benefits to all your employees. You can get term life insurance quotes online as well from the official websites of providers.

What Are the Plans Offered?

Let’s have a look at what all insurance plans you can offer to your employees.

Group Term Life Insurance

This cheap life insurance falls under the most commonly preferred insurance plans provided by an employer. Under these plans, the employees establish a collaboration with a life insurance provider to provide coverage at affordable premiums. If the employee passes while serving the serving the organization, the insurance provider offers a lump sum amount to their dependents so that they can take care of their financial responsibilities. Every organization that has at least 10 employees is eligible for a group term life insurance plan. The employees need to pay an affordable premium every month and can ensure financial independence of their loved owns. Along with the coverage, the employee also becomes eligible for tax deferral and can receive a discount on their annual taxable income.

Death and Dismemberment Plan

At times, the employees meet an unfortunate accident and pass away or lose their speaking, seeing and hearing ability due to the same. In such incidences, the life of dependents become quite miserable and they feel very helpless for the same. Depending on the loss the employee had, an accumulated cash is provided to the employee or the beneficiary to lessen the challenges of their lives.

Business Travel Accident Plan

Sometimes, employees are on a business trip to some other city or another country and they meet an accident, unfortunately. In those cases, the employer is responsible for the compensation. But if you have provided a business travel accident plan to your employees, you don’t need to worry about the same. In such scenario, the insurance company takes care of their medical and surgical expenses and the employer doesn’t have to pay for anything.

Important Instruction

To avoid unnecessary circumstances, you are supposed not to create a copy of medical questionnaire of your employee. Usually, employers commit the mistake of doing the same but that may create a case of discrimination among the employees if their claims don’t get approved. The best practice is to instruct employees to send their medical history and other required information directly to the insurance provider.





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