What could a group life policy do for your business? The potential is great and the cost might not override these advantages. We look at how this offering could transform your business in the final piece of the miniseries.
Photo: BPSUSF
Photo: BPSUSF
How Much?
Generally speaking, the average cost of insurance policies is a deep topic to explore – and it’s rather personalised. However, it may be useful to get a general grasp of the cost of life insurance, as well as look at typical amounts.
According to an online source, the “average policy” costs about five cents for every $1,000 worth of coverage. As the average amount of coverage generally equals the yearly salary (e.g. $40,000 a year equals $40,000 in life insurance coverage), perhaps this statistic could give you some insight into possibilities.
Premiums will generally be decided upon a number of key factors, including the size of the group, company claims history, gender and average age of employees, occupations related to the business, and employee salaries if a salary-based plan (as we just saw) is purchased.
Keep in mind that many insurers will not provide coverage for less than 10 members of the group. This may or may not be applicable to your business.
Insurance Benefits = Company Benefits
As we have seen in the other articles in this miniseries, having insurance benefits for your employees can translate well for the overall business. There are even direct financial benefits, such as your personal insurance needs and tax-related items.
A life insurance group plan could be the icing on the cake, so to speak. Health and dental benefits are typically seen for different-sized businesses, while life insurance can be less common. However, you could certainly separate yourself from other businesses with this additional benefit.
Adding this type of plan could certainly attract top-level talent to your business. If you have big visions for your business, these are the kinds of items that can help attract and retain quality employees. You can’t forget about that latter term – retain – as keeping your employees happy is manifest in benefits as well.
Finding Group Plans
You can start researching and comparing group life insurance plans today. Perhaps you will find some strong and cost-effective options to improve the benefits package for you and your employees.
As with other benefits that you can offer to your employees, it may be wise to use professional help. The connections and expertise of an agent or broker can be invaluable and save you time and money. You may consider finding one who can help your business with the right type of policy and insurer. Look for one who is familiar with your type and size of business.
Take your time to identify the best interests of your business. Perhaps a group life insurance plan isn’t the best option for your business at this moment. As you look at different options, you might find that the savings will be well worth the effect that it can have for your business. These benefits can certainly extend well into the future of the business.
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