Offering life insurance to your employees can be a great investment. It helps round out a benefits package so you can compete with other employers for top talent. It can also be very affordable, especially if you implement a cost-sharing program with employees. If you are thinking of adding it to your offerings, here are a few different group life insurance options to consider.
Term Life Insurance
This is the most popular and economical insurance option. It is commonly purchased as a single policy, and each employee who you wish to cover is added as they become eligible. This type of coverage would stop once an individual leaves your company.
Permanent Life Insurance
Whole life insurance has the added bonus of being an investment vehicle in addition to paying a death benefit. It can be expensive to purchase, however, so it might be best to offer this on a cost-sharing basis.
In some cases, you may be able to offer add-on policies for employees’ spouses, partners, or dependents. This can help ensure their entire family has appropriate coverage. You may also choose to offer other add-ons, such as accidental death and dismemberment policies
Life insurance can be a key component of a good employee benefits package. You have a range of options from affordable term insurance to more comprehensive whole life policies, plus an assortment of add-ons that can help round out your offerings.