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What is group life insurance, and why might it be the next best thing for you?

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If, like many Americans, the pandemic has left you with a greater awareness of the financial risks associated with mortality, you may have been tempted to ‘panic buy’ life insurance. However, there are many different types of life insurance policies to consider carefully. Here, we will delve into group life insurance and its benefits.

Group life insurance – defined

Group life insurance is typically offered by an employer or another large-scale entity, commonly as part of a larger benefits package. As with a regular insurance policy, group life insurance covers individual employees in the event of their death.

This pay out benefits both the business, who will be left with a vacancy to fill and the dependents, who might be left without their income. It can also offer bereavement support to all those who have been affected by the death.

People receiving group life insurance coverage might therefore not have to pay anything for their benefits. Instead, businesses will foot the cost of a basic group life insurance policy, and more advanced coverage can be elected to be deducted from your paycheck.

Due to this, group life insurance is typically taken out by a wider demographic than individual life insurance, which is most likely to cover those aged 45 to 54.

Now that you know what group life insurance entails, why might it be the next best thing for you?

  1. Makes your business competitive

Offering an exciting additional benefits package can help to set your business apart from the crowd. Thus, group life insurance can allow you to remain competitive when trying to attract top talent.

Not only this, but employee benefits can also help you to retain your existing employees. This is because it shows that you will go above and beyond to offer them support, making them more likely to return the favor.

  1. Offers medical and mental health support

Group life insurance doesn’t just offer a monetary pay out in the result of death- it also can help the living. Many group life insurance policies offer GP health care and mental health services in addition to the policy itself.

In turn, this will allow employees to get diagnoses, treatment, and medication quicker, which can reduce the amount of sick leave taken. This is important as, in 2020 alone, 118.6 million working days were lost because of sickness or injury in the UK, which equates to 3.6 days per worker.

  1. Provides financial security to your employees’ loved ones

One of the main causes of stress in the workplace is due to financial worries, either at the present or in the future. By offering a group life insurance policy, you will provide the promise of financial security for your employees’ families in the event of their death.

After all, being there for your employees, their friends, and family in their time of need is the right thing to do. With a group life insurance policy in place in your business, you can ensure that everyone has access to all the support that they need.