Employer Payroll Deduction Life Insurance
Why should an employer set
up an employee payroll deduction life insurance plan? For the following reasons:
w Because 60% of all employees have no other life insurance other than the group term life insurance provided by their employer.
w 90% of
all group term life insurance vanishes or is reduced drastically at the
employee's retirement or at their age 70.
w Approximately
90% of a company's work force will outlive their group term life insurance that
their employer provides.
w Employees
with health-related problems will not be insured by most carriers. If offered coverage, it is often cost
prohibitive.
w 70% of
employees have less than $2,000 of life insurance on their dependents.
w 80% of
Americans have not talked to a qualified life insurance agent in the
past 5 to 7 years.
What is the best solution
A payroll deduction
Universal Life insurance plan that offers the following benefits to your
employees:
ü Automatic
issue - no physicals or exams
required.
ü Post-Retirement
coverage that cannot be
reduced or cancelled by the insurance company.
ü Portable
coverage - the same low premiums
continue to apply even after the employee leaves the company.
ü Convenient
payroll deductions make it easy for
employees to pay premiums.
ü Flexible - coverages can be updated annually.
ü Spouse
and children's coverage available at
same economical rates without employee participation.
ü Professional
enrollers offering qualified advice with
employee and family in mind.
What are the advantages to your company?
No direct cost to your company since 100% of the direct cost for
this benefit is paid by the employee.
Also, the enrollment process will not disrupt employee productivity.
Fills gaps that have been
created in your existing coverage. It permits your employees to have permanent,
portable and paid-up policies.
Expands benefits so that
employees have permanent life insurance protection versus temporary coverage.
Takes employer off the hook
by giving employees opportunity to provide needed financial security to their
families.
No government regulation
since this benefit does not fall under ERISA guidelines.
Employer administration of this
benefit is minimal since the administration is handled by the
insurance/administration company. Everything from underwriting to policy issue
to billings to policy holder service to claims is handled by them.