The life insurance industry is a large and profitable one. Out of the 91 million Americans who have life insurance, 38% are businesses that offer life insurance to their employees as a benefit package. In fact, businesses only make up about 10% of people who own life insurance policies – meaning businesses have more policies than individuals – yet businesses only pay about 1/3rd of all premiums .
Life Insurance can be a great way for businesses to help protect their employees financially. Life insurance is a contract between the business and the individual employee that ensures that if something were to happen to them, those they leave behind could receive some form of compensation. It does not matter whether this would be from lost wages or from caring for those left behind because of an injury or death.
Group life insurance policies are a great way for businesses to provide life insurance protection for their employees. A group life policy is one in which a number of employees of a company are covered under the same policy. This type of policy is usually less expensive than if each employee were to get an individual policy, and it also makes it simpler for businesses to manage.
Here is some information on why businesses should provide life insurance for their employees.
- Life insurance is a valuable benefit that can help attract and retain top talent. Employees appreciate knowing that their employer cares about them and wants to help protect them financially especially if they have families. Offering life insurance as a benefit can also show employees that the business is committed to their well-being.
- Businesses should consider providing life insurance because it is a good way to protect the company in the event of an employee’s death. If an employee dies, the business may have to pay out significant sums of money for things such as final expenses, wages that were not earned, and benefits that were not paid. A group life policy can help offset some of these costs.
- Businesses should provide life insurance because it is a tax-deductible expense. This means that businesses can deduct the cost of premiums from their taxable income, which can save them money on their taxes.
Overall, there are many reasons businesses should provide life insurance for their employees. It is a valuable benefit that can help businesses attract and retain top talent. It is also a good way to protect businesses in the event of an employee’s death, and it is tax-deductible.