The most priceless asset of any company is its employees. As a way of taking care of the best assets, most companies offer Group Life Insurance. This type of policy is a guaranteed issue. Employees who have pre-existing health conditions need not worry about uninsurability. Medical exams will not be required. They have no premiums to pay too. The employer usually shoulders the premiums. But what if the employee needs more coverage? What are his options? What happens to his insurance if he leaves the company? This is where supplemental life insurance comes in.
Why Do Employees Opt for Supplemental Life Insurance?
Because it is often free and could easily be availed, employees take advantage of the Group Insurance policy once they receive an offer. They have to note, though, that the amount of coverage is typically equivalent to only once or twice their annual salary. If anything terrible happens to them, it may not be enough to cover medical expenses. It may also not be sufficient to provide for their family when they are no longer around. Moreover, the said basic coverage may cease the moment they leave their job. Hence, they may need to get additional insurance coverage.
To help employees meet their coverage needs, businesses may offer Supplemental Life Insurance on top of the Group Insurance policy. Some insurers offer additional life coverage, accident, or even short-term disability as part of the Supplemental Life Insurance package.
Cancer and dental coverage can also be a part of the policy. The cost is to be paid by the employee from his paycheck. The premium can be set up in such a way that it gets automatically deducted from their salary.
Given this scenario, what can employers do to help? Is offering a Supplemental Insurance Policy a must?
Offering Supplemental Insurance Policy as a Business Strategy
If you are within a vicinity of companies who offer Supplemental Insurance Policy and you don’t, then you are not thinking this through, and your marketing strategy is bound to crash. Your company is not doing its best to attract the kind of employees you would like to hire. Employees need them, and so you should offer it. Otherwise, your ideal workers are opting to work for the company next door who has this offering because you don’t.
Whether you are a small or medium-sized business, the truth is the needs of your employees are the same. They need insurance policies on life, disability, critical illnesses, and accidents. These insurance policies help protect their assets. Employees depend on their employers to help them settle their issues. Employers should offer programs that assist in exchange for hard work and loyalty from its people.
To cushion on possible financial impact, employers may offer to cover critical illness and accident supplemental insurance after-tax. This is an effective strategy small businesses may use to balance annual increments in medical premiums.
There is No Need to Increase Benefits Budget
There isn’t any financial repercussion to expect from adding a Supplemental Insurance Policy offering. Since it is not mandatory, and employees are allowed to choose whether to opt-in or not on particular circumstances, employers can provide this at no cost to them. They also have the ability to customize as needed depending on what they can accommodate financially.
A Happy Employee is a Productive Employee
An employee who doesn’t have anything to worry about is calm, focused, and success-driven. Knowing that they are financially covered regardless of what happens to them allows employees to focus on their tasks and give their best to succeed in their goals. They are also loyal to the company that enables him to have peace of mind. It is easier to retain talent and, as a result, decreases the efforts on recruitment and training.
Now more than ever, employers must be visible and consistent in their strategies to attract and retain the best talents. Competition is high. Offering Supplemental Life Insurance is an excellent way to beat potential contenders.
Lower turnover rates decrease spending on recruitment and training. If the employees and their families are satisfied with the type of support they receive from their employers, they spend less time looking for outside opportunities and zone in their efforts on what they can produce to make a difference. Thus, leaving you in a win-win scenario for sure.
About Moody Insurance Worldwide
Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.