Group Life/AD&D and Disability Insurance
Life/AD&D Insurance Protects Employees’ Families
While health insurance is a common employee benefit, it’s not unusual to get life insurance at work too.
Life insurance policies are important for protecting a family in case the primary earner were to pass away while leaving financial burdens such as debts that need to be paid. Employees often forgo investing in individual life insurance plans, especially at a younger age. A group life policy is an easy way to provide employees with affordable and convenient life insurance with similar characteristics to individual life insurance plans.
Group life/AD&D policies can are often paid for completely by the employer to cover all eligible employees. Employers can also choose to offer life/AD&D insurance for employees to elect and pay for on their accord. Generally employers will offer employer paid life/AD&D insurance as a base benefit and provide voluntary life/AD&D for employees to purchase additional amounts they feel they need. Voluntary life/AD&D insurance can usually be offered to spouses and children so employees can cover their families.
The U.S. Bureau of Labor Statistics reports that three-quarters of full-time civilian workers are offered life insurance by their employers. The overwhelming majority of them take advantage of the benefit.
Disability Insurance Protects Employee Income
Employer’s can provide both short-term and long-term disability as a benefit for their employees. Disability income insurance is available to continue a portion of earnings while an insured is disabled. Statistically, someone who is 25 years old today is much more more likely to become disabled for at least 90 days by the time they reach age 65 than they are to die by age 65. Yet, they are more likely to purchase life insurance than they are disability income insurance.
Group disability insurance is an affordable and reliable way to provide employees with the financial security and assurance they need if they were to ever be unable to work. Group disability insurance plans can be paid for completely by the employer or by the employee. If paid for by the employee, group disability policies are advantageous when compared to individual disability policies in that they are generally more affordable and more convenient for employees while still providing adequate coverage.