53% of all consumers are more likely to buy life insurance if it’s easy to purchase and they don’t need an exam.
In this article, I’d like to share with you a life insurance product that does just that: it simplifies the buying process and does not require medical underwriting.
What am I talking about? What kind of life insurance product is easy to buy without a medical exam?
Voluntary Worksite Life Insurance
I work with clients every day to get personal life insurance in place. Most of the people I encounter are eager to get this essential coverage in place. It brings them peace of mind to know that their life insurance policy will take care of their family if the unthinkable happens.
My clients are comforted knowing that their loved ones won’t bear extra financial burdens in the case of an untimely death. Instead, their loved ones will have one less worry.
As of late, I’ve also been helping businesses support their employees by offering them a voluntary life insurance product. Their employees are not required to purchase this coverage, but most take advantage of the offer.
If you’re not already providing your employees with a life insurance product, you may want to consider adding this benefit to their package.
This article outlines the top five reasons this product is fantastic for just about every business. Here they are:
- Offering life insurance to your employees makes your company more attractive- helping you keep your outstanding employees and entice potential talent.
- Worksite life insurance adds to your employees’ financial security – and financial security leads to more productive employees.
- Many employees won’t qualify for life insurance on their own – so worksite life insurance can fill a huge need in their life.
- Worksite life insurance won’t add any cost to your business.
- Employees love it!
Now, let’s take a closer look at each.
1. Offering life insurance to your employees makes your company more attractive- helping you keep your outstanding employees and entice potential talent.
Consider these statistics.
- 78% of employees said they are more likely to stay with their employer because of their benefits program.
- 64% of businesses offer life insurance to their employees.
- 81% of workers want help getting life insurance.
- 98% of employees take advantage of life insurance offered by their employer.
Life insurance is an important benefit to offer if you hope to be competitive in the marketplace.
If you’re not providing a life insurance option to your employees, potential hires may be less interested in working for your company. You might also lose great employees to other companies offering a more robust benefits package.
If you want to make your business highly attractive to potential talent and retain your outstanding employees, including life insurance in your benefits package is necessary.
2. Worksite life insurance adds to your employees’ financial security – and financial security leads to more productive employees.
While life insurance doesn’t increase your employees’ bottom line, it does offer them financial peace. Your employees will rest easier knowing that their loved ones will be cared for if something tragic unexpectedly happens.
When your employee has a life insurance policy in place, it can also ease the burden of preparing for the worst. Your employee will know that in the event of their untimely death, their family will have the resources they need to pay off debt, cover burial expenses, and relieve regular expenses.
3. Many employees won’t qualify for life insurance on their own – so worksite life insurance can fill a huge need in their life.
Voluntary worksite life insurance allows your employees to put a life insurance policy in place when they don’t qualify for personal life insurance.
Personal life insurance products are almost always medically underwritten. This means that before a person can get life insurance, they must submit to a medical examination and testing, disclose their past medical history, and list their current medications before qualifying for a life insurance policy.
An individual can be denied personal life insurance if they have a history of stroke, cancer, heart disease, or type 1 diabetes.
And if an individual has other chronic health problems or is overweight, they will not qualify for the best rates available for personal life insurance. Their premium will often be so high that a policy is unaffordable.
All of your employees qualify for a policy with voluntary worksite life insurance. The premium amount will be based solely upon their age.
And your employees will have a locked-in rate–meaning their premium will not increase throughout the term of their policy.
4. Worksite life insurance won’t add any cost to your business.
One of the top reasons to add voluntary worksite life insurance to your benefits package is that it won’t cost you a dime!
When you offer voluntary worksite life insurance to your employees, your responsibility is to inform your employees of the option and have them talk with your employee benefits broker about their options. You will also need to arrange for their premium amount to be deducted from their regular pay.
Voluntary worksite life insurance is an employee-owned product. This means that when your employees purchase a policy, they own it outright. Even if they leave your company, they still have their policy.
Voluntary worksite life insurance creates a win-win! This product allows you to add to your benefits options without cost. And your employees will appreciate the opportunity to put a vital insurance product in place for their families.
5. Employees love it!
Voluntary worksite life insurance is such a great product that employees love it!
Why do they love it? What makes it so attractive?
These are the reasons employees love this product:
Everyone qualifies
I’ve already mentioned this, but it can’t be overstated. Everyone working at your company qualifies for this life insurance product.
For instance, I recently spoke with a woman who desperately wants life insurance for her and her family.
Unfortunately, she is young, with Type 1 Diabetes. This keeps insurance prices extremely high for her.
With Voluntary Worksite Life Insurance, she will automatically qualify for the cheapest rate, as though she had never been diagnosed! All because her employer opts in! And it won’t cost her employer anything.
Reasonable cost
The premium amounts on a voluntary worksite life insurance policy are based on the best rates available for life insurance. Most individuals would not qualify for these rates if they purchased a life insurance policy on their own.
Multiple options
Another attractive feature of voluntary worksite life insurance is the numerous options available to each employee. This product is not sold as a one-size-fits-all policy. Your employees can customize their policies to meet their needs.
Your employees can choose:
- Between a term life, whole life, or term life with return of premium policy or a hybrid of those products (For example – $50,000 term and $50,000 whole life)
- The amount of death benefit they want up to $100,000
- To add life insurance for their spouse, children, and sometimes even their grandchildren
Voluntary worksite life insurance allows your employees to customize their policy to meet their needs and make sure it fits into their budget.
Easy to increase the death benefit
Employees also love how simple it is to increase the death benefit with this product. If your employee wants a death benefit amount greater than $100,000, they can apply for a higher amount.
The process to apply for a higher death benefit only requires your employee to fill out one extra page of health questions. They are not required to have a doctor fill out the form or have a medical exam. 90% of requests to increase the death benefit amount are granted.
I’d like to know more about offering Voluntary Worksite Life Insurance to my employees. What’s my next move?
You might be thinking that Voluntary Worksite Life Insurance sounds like an employer’s dream. And it is!
This product increases your employees’ benefits without increasing your financial commitment.
If you would like to evaluate if this product would benefit your business, you should schedule a time to meet with either your employee benefits advisor or a life insurance advisor. They can explain in greater detail what it would look like to put this solution in place for your business.
Working with an Advisor at Baily Insurance
If your business is located in Pennsylvania, West Virginia, or Ohio, the Baily Insurance team would welcome the opportunity to work with you.
Our team believes it’s essential to assess if we would be a good fit to work together. Knowing that our values align with yours and that our team has the tools to help your business is a top priority. We only work with businesses that we can truly help.
We invite potential clients to meet with us for a short introductory meeting to start that process. During this 15-minute meeting, we can quickly evaluate if we should schedule more time to dig in and help you with solutions that will help your business meet its insurance and benefits goals.
If you’d like to get some time on our schedule, please let us know by filling out the form below. We’re looking forward to hearing from you!
