Life insurance companies is one of the oldest types of insurance polices. It is a product that can protect a loved one or company from a sudden death of an important person whose skills of earning an income or value to a business for financial devastation. Statistically speaking it can also be one of the most profitable insurance plans to an insurance company if they manage their risk very well. From a consumer stand point it is the only type of life insurance policy that is guaranteed to pay a claim, as we are all guaranteed to die someday.
There is a chance that this question is asking "Why do employers offer life insurance to employees". If that is the intent of the question, the response is to attract and retain qualified employees.
Companies that offer life insurance as an employee retention tool provide group plans. In group plans the employer owns the contract, and pays the premium. All employees are automatically covered. That means people with poor health or preexisting conditions can get coverage.
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Companies that offer life insurance as an employee retention tool provide group plans. In group plans the employer owns the contract, and pays the premium. All employees are automatically covered. That means people with poor health or preexisting conditions can get coverage.