Do your employees have enough life insurance?
The benefits of adding employee-paid supplemental life
With everything going on in the world today, many people are looking for ways to protect their families and provide some peace of mind. Life insurance is a way to help do that. As the foundation of any financial plan, life insurance provides an immediate infusion of cash when it is needed most to cover final expenses. However, even if your employees have life insurance, they may not have enough.1
Studies show that only 54% of American adults have life insurance,1 and about half of those don’t have enough to fully protect their families. In fact, 48% of households (60 million) have an average life insurance coverage gap of $200,000.2
While you may offer basic life insurance of 1- or 2-times one’s salary, your employees may need more to protect their families. Offering supplemental life insurance is another way to help.
What is employee-paid supplemental life?
If you offer basic life insurance for your employees through a group policy, supplemental life gives them the opportunity to purchase additional coverage based on their specific needs. For example, if you offer $10,000 of life insurance per employee, you may also allow them to select supplemental life insurance coverage of up to $300,000, giving them the options for more insurance that they may need.3
By adding supplemental life to your benefits package, you can help your employees:
- Replace income, fund a child’s education, or pay off a mortgage if the employee passes away unexpectedly
- Provide more protection for their families than a basic life insurance plan
Help employees determine if they’re underinsured
Your employees may not realize that they are underinsured and need additional life insurance protection. You can help educate them by providing some ideas about when they might need to increase their coverage, such as:
- An increase in salary
- New marriage
- Having children
- New home
To decide how much they’ll need, they should consider how much they contribute to their family’s income and expenses, then elect or purchase enough insurance to help their families continue to live the lifestyle to which they’re accustomed.
1 2020 Insurance Barometer Study, Life Happens and LIMRA.
2 Life Insurance Ownership in Focus: U.S. Household Trends 2016 LIMRA Ownership Study.
3 Situation is hypothetical and used as an example for purposes of explaining the life product. Individual situations and circumstances may differ.
All group insurance products are issued either by Equitable Financial or Equitable America, which have sole responsibility for their respective insurance and backed solely by their claims-paying obligations. Some products are not available in all states.