Life insurance can be one of life’s musts for virtually everyone. If you’re a breadwinner, you know that your income is essential to your family’s way of life. If you were to die, your life insurance could be the only thing that stands between them and financial hardship.
Many people choose to buy life insurance individually, typically either as a whole life or term life policy. If you have an option to purchase group life insurance coverage – usually offered through an employer – you should consider the importance of group life insurance benefits.
Insure.com describes how group life insurance works: “when offered as part of a basic benefits package, the coverage is often free to the employee, with higher levels of coverage available at group rates.”1
According to BenefitsPRO, there are three main reasons why life insurance is essential to a benefits package: it attracts and retains talent in the growing workforce; it enhances employees’ financial wellness; and it increases employees’ satisfaction and productivity.2 The reason for the importance of life insurance, notes BenefitsPRO, is employees want to protect their family and loved ones, and will be more likely to value the employer that aids in that protection. 2
The Balance Careers also highlights the importance of group life insurance, stating “it is one of the comprehensive set of benefits that employees look for when they job search and choose an employer. Especially employees with families like the security of the safety net that life insurance provides.”3
If you have the option to buy group life insurance, you should carefully consider your personal circumstances, its benefits, and its cost (if any). You should also consider how much to buy, if the policy can be converted to an individual policy, or if it’s portable. If you have questions about group life insurance and its benefits, consult with your employer’s benefits administrator or a licensed insurance agent from the insurance company offering the group coverage. If you have questions about how much life insurance coverage you should have, contact a financial advisor.
- Insure.com, The Basics of Group Life Insurance, 2019
- BenefitsPRO, 3 Reasons Life Insurance is Essential to Any Benefits Package, 2018
- The Balance Careers, Life Insurance Adds Value to Employer Provided Benefits, 2018
Categories: Insurance, Group Life Insurance