A group life insurance is a contract that protects the members of a particular group such as employees, members of a club or association. This insurance plan provides financial compensation in the event of the death of a member of the group.
As the leader of an association, youâre accountable for its members. Some associations who understand the importance of a group life insurance plan endeavour to protect their members with one. The following illustrates the importance of a group life insurance plan for associations.
Importance of Group Life Insurance
It Motivates Members
The assurance of a life insurance plan for employees has been proven to increase employee productivity. Since few employers subscribe to life insurance for their employees, employees who benefit on life insurance are motivated.Â
It helps enhance company culture
Making life insurance plan a part of your company benefit is vital to creating an influential company culture. With a life insurance plan as an employee benefit makes employees feel valued and demonstrates your organisation as an employee-centric one.
Helps attract and retain employees
When new applicants are seeking for a job, a life insurance plan is parts of the differentiating factors that make them consider positions. It would be sad to lose a credible applicant because of a lack of health insurance scheme for your employees.
Advantages of Group Life Insurance
Default coverage for members: Coverage for members under a group life policy is âauto coveredâ by merely being a member of the association.Â
Overrides health checks: One advantage of a group life insurance is that itâs beneficial for those considered as a high-risk group to cover since insurance is offered to all members of a group or association.Â
Tax benefits: In most cases, an association gets tax benefits on group life insurance plans which helps them reduce their tax liability.Â
Affordable: The group life insurance is considered as one of of the most affordable life insurance plans. Coverage for many members under a group term makes it affordable compared to individual members opting for a policy.
Easy premium payment options for Associations: Depending on the associationâs needs, the members or the association can choose monthly, quarterly, half-yearly and annual premium payment mode as per their convenience. Since payment is in a group, it becomes easy.
Beneficial to members well being: Studies show that when employees know they are being cared for, their productivity increases. Group term life insurance policies play an essential role in the retainment of members in an association. It offers financial security to the beneficiaries of members which brings peace of mind to members.
Conclusion
As the leader of any association, you want to guarantee security for your members and assure their beneficiaries are left in good shape even when members are no more. A group life insuranceÂ