Employers often offer group life insurance at no cost to employees. Group coverage remains in effect as long as the employee continues working for the employer owning the master contract.
Employers offer life insurance and other employee benefit programs as a retention tool. Recruiting, hiring, training and developing productive employees is very expensive. Employee turnover is very costly to employers, so any employee benefit that improves retention may lower overall costs.
It is offered as part of a benefit package designed to attract and retain good employees. Retention of good employees is critical to employers as employee turnover is very costly (costs associated with recruiting,hiring,training,developing productive employees). This group life insurance remains in effect as long as the employee remains employed by the employer offering this coverage.
President, Lane Independent Agency, Southern California
Employers do this to help attract better employees. They also do it to hold on to those employees. This is because if someone leaves their employment, they generally will automatically lose all of their life insurance. Then the former employee has to start all over again, at an older age, and perhaps poorer health, looking for life insurance. You are far better off getting your own life insurance as early as you can, regardless of any employer plan. Consult with your agent. GARY LANE. garylane@cox.net. 714 422 9616. Thank you.
.JPG){kind=avatar}
Employers offer life insurance and other employee benefit programs as a retention tool. Recruiting, hiring, training and developing productive employees is very expensive. Employee turnover is very costly to employers, so any employee benefit that improves retention may lower overall costs.