As an employer, you will want to provide your employees with various benefits to make their jobs more attractive and ensure they are happy working for you. If you are reading this, then you are probably considering giving your employees life insurance. While this is not a type of insurance that you are required to provide, it is a great perk for your employees to have.
If you want to offer this kind of insurance, you will first have to consider a few things, such as who the life insurance should cover, how much to offer, and more. Here are the considerations you need to make to help you properly offer life insurance to your employees.
1. The individuals
First, you must think about the individuals you want to offer life insurance to. For instance, you may want to consider only your full-time employees if you are also employing part-time workers. If you can, consider getting a group-term life insurance policy, as covering for a large group of people can generally land you much lower rates. Plus, your employees will not have to undergo other processes, such as medical exams, which saves both time and money.
The best part about covering all your full-time employees is that you will also be eligible for premium deductions for tax purposes. However, if you want to pick and choose only specific individuals for life insurance, keep in mind that you will have to meet nondiscrimination requirements if you still want deductions. Otherwise, you will not be able to deduct premiums.
2. The amount
Second, you must think about the amount you want to cover for each employee. If you go with a group-term life insurance policy, you can either choose a set amount or calculate it based on each employee’s income. On the other hand, if you want to give your employees some flexibility in terms of coverage, you can also allow them to purchase their life insurance in smaller increments. The cost will still vary, but it will generally depend on the employee’s age.
3. The providers
Third, you must think about which insurance provider to work with. The best way to go about this is to research the insurance providers that you have access to. If you have not started with a list yet, you can ask your friends, family, and even employees about where you can get such a policy.
Once you have a list, the next step is to ask each insurance provider plenty of questions to find the best one for your needs. For example, you can ask for the benefits the policies provide and what you can do to lower the rates even further. This information can help you identify which life insurance policy is perfect for your employees, allowing them to receive the right coverage at the right price.
Getting life insurance for your employees, while not necessary because they can purchase their own, is a great way to show that you care for their well-being and want to reward them for working with you.
There are various life insurance options out there you can pick from. However, we highly recommend opting for group-term life insurance policies, as they make the entire process much simpler. Take the time to research which insurance providers to pick, and make sure they provide all the forms your employees need to apply for the insurance. Abbot Benefits aids various companies and businesses in Texas to help their employees benefit from medical plans and life insurance. If you are looking for a group health insurance broker in Houston, work with us today!