Picking out the benefits and perks you offer employees can be a complex and time-consuming task. There are so many options to consider, and it is easy to get bogged down in looking for niche features to make your company stand out from the crowd.
Because of this, it’s sometimes best to stick to the fundamentals before going off-piste. Life insurance is a great example of this, because it’s a benefit that every team member will appreciate.
Of course there are still points to consider and issues to analyze before going all-in on any old life insurance package, so let’s run through the things you need to know as an employer.
Not all policies are created equal
First and foremost, you need to make sure you select a competitive and attractive life insurance deal for your employees to take advantage of. If you rush into this, you could end up with a company insurance package that is actually worse than what a worker might find on the open market, which means that it would hardly be seen as a benefit.
There are lots of things to look out for here. Make sure that the age range offered by the insurer is adequate to accommodate your workforce. Check that the level of cover provided is capable of looking after their family financially in the event of their death.
Consider whether other types of support are provided, beyond the purely financial, as part of the cover; for example, grief counseling is offered under some life insurance policies, but not others.
Also be aware that plenty of life insurance packages will deliver benefits that employees can embrace immediately, such as discounts for gym memberships, nutritional advice and even medical care.
In essence, do plenty of research and weigh up the merits and pitfalls of the policies on offer before settling on one for the entire organization.
Premium payments are usually tax-deductible
In most cases, life insurance premiums related to employees will be paid for by the employer, so obviously this is an additional overhead about which you might be concerned.
Luckily these tend to be tax-deductible, so long as the total amount spent annually is under $50,000. Go over this and the remainder will be taxed as usual.
There are of course all sorts of other ins, outs and implications of having benefits like life insurance provided by the company, so be sure to work with an accountant to stay compliant.
Life insurance can increase loyalty and provide peace of mind
Lots of businesses might use life insurance as a lure to bring new talent to the organization, but it is not just a marketing exercise from a recruitment perspective. Offering this benefit also has the ability to keep team members loyal for longer, and also to improve their state of mind, which has productivity implications as well.
In short, if workers are not having to worry about life’s big questions, such as whether their loved ones would be able to make ends meet if they passed on unexpectedly, they will be better able to focus on their jobs.
Likewise it shows that the company is committed to catering to their needs, both for today and in the long term. Loyalty has to be a two-way street, and it can help to foster a company culture of positivity if the benefits available are not just disposable.
Hopefully you now know more about the hows and whys of providing employee life insurance as a company benefit. In most cases, it should be considered a must-have feature that is also relatively affordable.