September is National Life Insurance Awareness month, and an excellent time to revisit a frequently overlooked topic. While it is common practice to insure homes and vehicles, often we don’t think to insure the financial health of our families and loved ones.
Although life insurance is usually an employer provided benefit, most Americans do not have it or do not have enough of it. For the majority of consumers that do have life insurance, their only coverage is from a group basic life plan provided by their employer. For some families the standard life insurance offering may not be sufficient to ensure financial wellness. Supplemental group life insurance, which augments the life insurance offered by an employer, enables employees to protect their families’ financial wellbeing. However, according to LIMRA, a research, learning and development organization, only about one-half of employers offer supplemental life insurance. LIMRA’s Household Trends in U.S. Life Insurance Ownership (footnote 1) revealed that one in five households with children under age 18 are uninsured, according to the 2016 study.
Of those families who have no life insurance coverage, 7 percent recognize they need life insurance and 62 percent say they would be in immediate financial trouble if a primary wage earner died.
Employees who were offered voluntary benefits at work report higher levels of satisfaction with their jobs and benefits. And it’s important to note that morale and productivity are closely tied to the happiness of your employees. However, there are many factors to consider when offering group or supplemental life insurance. You may be able to offer your employees the financial security of supplemental life insurance without increasing your benefits budget. Reach out to your OneDigital Consultant to find out more.
Find out more about Life Insurance Awareness Month and what steps you can take right now to look out for the ones you love by visiting the Life Happens website, a nonprofit organization that spreads awareness about the importance of life insurance.
1 - Source: LIMRA's Trends in Life Insurance Ownership Study 2016