‘It is a financial protection plan that offers a cash benefit to a beneficiary upon the death of the insured.’
The voluntary life insurance is an optional benefit offered by employers.
The employee pays a monthly premium in exchange for the insurer’s guarantee of payment upon the insured’s death.
As compared to the individual life insurance policies sold in the retail market, the employer sponsorship for the voluntary insurance plans is less expensive.
Here are a few benefits of voluntary supplemental insurance that are provided by an employer-
The employers get a group insurance rate which can be lower than an individual life insurance rate. Even the employer can subsidize the part of the premium.
So, when an employee gets a voluntary life insurance program through the employer, the prices paid are relatively less which lead to saved costs.
Getting insured through the employer voluntary insurance program is much like getting coverage through a group plan, so you pay the same rate as everyone else does. There is no need for a medical examination.
You just need to answer a few questions in order to qualify for group insurance coverage, however, there is no need for medical exam. So, the process is relatively easy.
Increased employee engagement
It is an added advantage for the employer. The employees gravitate towards voluntary coverage as it helps them get coverage benefits for their families in an easy manner.
Also, it increases employee loyalty as there is a feeling of being cared for by the employer. Also, it means when the employees are happier at the workplace, it will result in improved productivity.
So, it is important to choose the right insurance coverage for you and the employees. Getting in touch with an insurance broker will help you understand how voluntary life insurance program and voluntary supplemental insurance is beneficial and how to choose wisely.