Providing life insurance for eligible employees provides them with a valuable benefit to help protect their loved ones with the flexibility of selecting or changing beneficiaries as needed. As an employer, it can provide you benefits of:
- Increased loyalty and reduced turnover of workers
- Tax-deductibility of premiums paid by employer*
- Additional attractiveness of overall benefit package by offering
- Life insurance and key employees
You may want to consider other ways that life insurance can be used as an employee benefit that can increase loyalty, make overall compensation more attractive for key employees and protect your business.
Consider offering select key employees a special life insurance plan as an additional incentive for staying on or as a bonus.
Consider purchasing life insurance with the company as beneficiary on key executive or other employees if their death could have significant economic impacts on the company’s performance.
Consider life insurance as a means of funding a business continuation plan to fund purchase of the company by family members, key employees, etc, who may otherwise not have the financial assets or funding to do so.