Offering voluntary benefits, such as group life insurance, supplemental life insurance and disability insurance, is a great way to help your employees feel valued while costing you little to no money. Your employees are busy professionals, and most of them want inexpensive, trustworthy insurance solutions. As their employer, you might only have to spend the time it takes to research these benefits and implement an information distribution plan. With minimal effort, these programs will pay dividends to your business through a more loyal workforce.
Different surveys back up the widespread positivity surrounding such benefits:
- Mercer survey data “indicates that employees are willing to pay 100 percent of the costs of certain (voluntary) benefits.”
- A LIMRA report “found that 90 percent of companies will continue to offer ‘comprehensive (voluntary) options’ to workers in their employer-sponsored benefits plans.”
In short, more companies are offering these benefits — and their employees are happy to pay for them with the employer as the access point.
Group life insurance is one of the most common voluntary benefits. Generally, a basic life insurance plan for all your employees will cost you a small premium per employee. These plans are inexpensive because enrollment is mandatory, meaning all employees automatically have coverage. Frequently, the amount of coverage is based on employees’ salaries, often at one or two times their annual pay. Because these plans are so common at mid-sized companies, some of your employees might assume that you are already offering basic life insurance.
Supplemental Life Insurance
Supplemental life insurance policies allow employees to add incremental amounts of life insurance dollars on top of the basic plan mentioned above. Supplemental plans are important because they cost significantly less when purchased through an employer; a life insurance policy purchased elsewhere might cost 10 times more than the one available at work. Don’t fret about the “mandatory” nature of these plans. Here, the term “mandatory” likely means you only have to tell your employees about the option. And there is no cost to you; employees often just pay a few additional dollars out of each paycheck.
Many of your employees might not like to think about how they will pay for basic necessities if they can’t work. Disability insurance is the answer. A simple slip-and-fall accident could put an employee out of work for weeks or months, and while state and federal plans can help, they frequently don’t offer sufficient coverage for your employees (and their families) to maintain their current lifestyle. Again, offering this option comes at no cost to you.
Versatile, comprehensive benefits packages are more important than ever for attracting — and retaining — top talent. Investing time in offering additional, voluntary benefits will help transform your workplace into a more productive business.
Dylan Murray has an MBA from San Diego State University and a bachelor’s degree in communication from Boston University. He is a licensed insurance agent in California, but he works as a professional researcher and writer reporting on business trends in estate law, insurance and private security. Dylan has worked as a script analyst with the Sundance Institute and the Scriptwriters Network in Los Angeles. He lives in San Diego, California, and Marseille, France.