Voluntary
benefits are becoming an increasingly important part of an employer’s strategy
to attract and retain top talent.
What is Voluntary
Life Insurance?
‘The voluntary
life insurance program is a protection plan that provides a cash benefit to the
beneficiary upon the death of the insured.’
The
employee pays a monthly premium in exchange for the insurer’s guarantee of
payment upon the insured’s death.
In
addition, with employer sponsorship, the voluntary life insurance policies are
less expensive than the individual life insurance policies sold in the market.
However,
the business owners aren’t aware of the voluntary insurance plans and cannot
make our how to invest in the plans and what would work best for the employees.
Here
are a few mistakes that the businesses make while choosing voluntary life
insurance program and need to be avoided-
Not tailoring
your plan
A
survey conducted by Aflac analyzed around three-quarters of workers and
reported, “They prefer receiving a broad package of benefits including major
medical, dental, vision, disability and life insurance. In some cases, it can
be wastage of your money as Rob Lynch’s Forbes blog says- ‘You don’t need to
offer all workers everything thing- it’s more important to tailor your product
mix to the specific workers you are looking to attract and retain. “Small
employers should focus on a core set of benefits- medical, dental, disability
and vision care,” Lynch writes.
Working with an amateur benefit administration
Outsourcing HR functions can be your option to save
time and a great deal of money. But when it comes to voluntary insurance plans,
every benefit administration is not equally skilled. When shopping for a
benefits administration firm, it is important to ask about their experience in
the field and feedback of their existing clients. In case, you contact a
benefits organization that doesn’t have adequate knowledge, you and your
employees, both will be in trouble.
Get in touch with an experienced voluntary benefits
provider and choose the best plans for you.