One of the major goals of a quality employee benefits program is to provide resources, namely insurance options in the case, that employees can and will use. Employee group life insurance has always helped employers meet that goal. It allows you to offer a valuable resource for a nominal investment. Most employer-offered life insurance programs lack one key benefit: employees can’t take the coverage with them when they move on.
As you tailor your benefits package to attract and retain employees, you should consider one critical fact. No matter how big the salary, no matter how great the benefits, employees eventually leave. Ultimately, that’s why it’s important to give them life insurance options they can take with them.
Careers and jobs are temporary
While retention is a critical employer goal, employees don’t always think the same way you do. Employees no longer see careers and jobs as a long-term situation. They move on for more money, improved work environments, and greater career advancement.
The Bureau of Labor Statistic’s biennial tenure study sheds light on the temporary nature of traditional employment. Then the BLS looks at the average time on the job for employees ages 16 years and over.
In a 2018 study it was found that 4.8 years was the median employee tenure. It ‘s a figure that’s remained somewhat consistent over the past few years. Overall, the numbers vary by age and industry.
- Workers 55 to 64 averaged 10.1 years on the job.
- Workers age 25 to 34 averaged 2-8 years.
- Public sector wage and salary workers averaged 6.8 years.
- Federal employees averaged 8.3 years.
The benefits of portable life insurance
So, employee group life insurance programs provide an essential benefit at a relatively low cost. So firstly, if a tragedy occurs, employees can provide a nest egg that ensures their family’s financial survival. Secondly, if an employee decides to change jobs, they leave that valuable benefit behind. Finally, if they purchase a policy even a few years later, they’ll pay a higher premium.
Optional whole life insurance for employees provides a number of benefits.
- A whole life policy option can supplement existing group life insurance benefits.
- When employees pay the cost it can be a valuable benefit that’s cost-free to employers.
- A whole life insurance policy allows younger employees to capture a low rate and keep it for a lifetime.
- Optional life insurance can be portable so employees can take it with them as they move to their next job or start their own business.
- A portable life insurance benefit makes it easy for employees to keep their life insurance and maintain a safety net for their families.
- Employees own and control their policies. They can take the coverage with them no matter how many times they change jobs.
Portable term insurance
In conclusion, a term insurance option can be a great fit for employees who want insurance at a lower price. If the coverage is portable, they can take it with them as they move on to their next job. If it’s convertible, they’ll have the option to convert it to a whole life policy when they’re ready.
At Health Consultants Group, our benefits experts can explain our available employee life insurance options. Visit our contact page or call us at (800) 367-2482 if you need assistance with life insurance or any other employee benefits.