What is the Best Term Life Policy

What Type of Term Life Insurance Policy Is Best for Your Employees?

Best Term Life PolicyLife insurance is a generous benefit to offer employees. Many adults only have life insurance through their employer. The peace of mind of an employer-provided life insurance policy means a great deal to employees who want to do all they can to ensure the security of their family.  Find out what is the best term life policy.

Types of Group-Term Life Insurance Policies

Group-term life insurance policies are typically in effect for the length of a person’s employment. The most common types of group-term life insurance policies include:

  • Employer paid: Employer-paid term life insurance is like group health insurance in that the policy provides coverage for all participating employees. If your company chooses to purchase this type of policy, you will pay just one premium overall instead of a premium per employee.
  • Employee paid: It is possible to provide employees with access to a standard amount of term life insurance coverage without being responsible for or paying any portion of the premium. The employee then has the option to purchase additional insurance benefits up to $50,000, using pre-tax dollars. An employee-paid policy also allows for the purchase of supplemental coverage over $50,000, but this choice will incur a tax and eligibility may be dependent upon the results of a medical exam.
  • Contributory: Simply enough, a contributory term life insurance policy is a combo of employer-paid and employee-paid policies.

Why Employees Value Group Term-Life Insurance

The benefits package is often one of the biggest deciding factors for potential employees when they are weighing a job offer. Group-term life insurance can be a deciding factor for many reasons:

  • Cost is typically lower than purchasing life insurance on the open market.
  • There is no requirement to endure underwriting.
  • Employees cannot be denied coverage because of pre-existing or chronic conditions.

The Questions Employers Must Answer About The Best Term Life Policy

As with any type of group employee benefits, employers must decide how to design group-term life insurance and the best term life policy to be the most beneficial to their employees and affordable for the budget. Questions to answer include:

  • Who gets coverage?
  • What benefits will be offered?
  • What is the optimal policy for employees?
  • What is the most cost-effective amount of life insurance that can be offered?

Insuring a larger group often translates to lower rates and eliminates the need for employees to undergo qualifying medical exams. You can choose to offer insurance to full-time employees, key employees, sub-groups of employees, and even retirees. Group-term life insurance plans can usually be customized to include additional benefits like accidental death and business travel accident insurance.

The administration of group-term life insurance policies and other benefits make the difference between happy and disgruntled employees. Contact The Benefits Group to discuss your company needs and make the best choices for your company.