These unprecedented times have left many thinking about the need for life insurance during COVID 19. Many are in a state of financial insecurity and concerned for their financial futures. Unpreparedness for sudden unemployment or the loss of a family’s primary wage earner has people scrambling to protect themselves and their families should they be directly affected by this pandemic.
COVID-19 has underscored the importance of protecting one’s family with life insurance. For many Americans, the easiest way of obtaining life insurance is through an employer benefit package. An employer’s insurance offerings are a core consideration when choosing a job, so it’s critical that in addition to comprehensive health insurance, you’re also offering robust life insurance options. But just offering life insurance isn’t enough anymore — employers also need to educate employees on the benefits of life insurance, detail the specifics of each available plan, and urge them to enroll as a proactive step in protecting their family’s financial security.
When choosing group life insurance during COVID-19
There are two main types of employer-provided group life insurance: Employer-paid Life and Supplemental/Voluntary Life Insurance.
Many employers offer Basic Employer-paid Life and cover part of the premium, but it’s also advised to offer Supplemental/Voluntary Life Insurance as well to ensure employees have sufficient coverage to meet their family’s needs. Employees who enroll in Supplemental/Voluntary Life Insurance have the cost deducted from their paychecks.
A comprehensive life insurance plan should also provide resources to help employees and their dependents navigate certain unexpected events or stressful times — the pandemic being a perfect example. Some additional benefits to look out for include counseling, financial and legal consultations, identity theft services, identity theft protection, and tools to help put together wills, power of attorney and other legal documents.
Offering life insurance options that go the extra mile will provide employees with a sense of security and peace of mind, which translates to increased retention for employers.
What to know about continuation of coverage
To further ease worries brought on by the pandemic, another important aspect to consider when choosing life insurance is a a plan’s provisions for continuation of coverage. The role of continuation of coverage is simple — to ensure those enrolled in employer-provided insurance are covered for an extended period of time when they’re no longer eligible for coverage under the plan.
With many companies forced to downsize or furlough parts of its workforce since the pandemic began, the need for continuation of coverage has become abundantly clear to more employers.
Educate and encourage employees to enroll
With no clear end in sight for this pandemic, employers should use this as an opportunity to educate employees about the benefits of life insurance and why it’s a smart investment. Employers should give new employees detailed information about the available life insurance options upon their arrival and remind current employees of the benefits of their group life insurance throughout the year.
Life insurance is an important part of someone’s overall financial wellness strategy and providing employees with comprehensive options shows that an employer has the best interest and well-being of the employee and their family top of mind. Caring for employees beyond their work product is particularly imperative right now. Providing options for life insurance during COVID-19 is an important step.
The professionals at the Ziff Agency often work with corporate teams to find the right options for employee benefits. Contact us for a consultation.
(Source: Benefit News)