Category: PHP Agency Reviews

Life insurance is a crucial financial tool that provides peace of mind and financial security to your loved ones in the event of your passing. However, determining the right amount of coverage can be challenging. In this comprehensive guide, PHP Agency reviews a step-by-step process to calculate your life insurance needs accurately. By following these steps, individuals can ensure that their family is adequately protected and financially secure in the future.

Step 1: Evaluate Your Financial Obligations

The first step in calculating life insurance needs is to assess your current financial obligations. This includes outstanding debts such as mortgages, car loans, student loans, and credit card debt. Additionally, consider your family’s living expenses, including monthly bills, groceries, childcare, education costs, and any other ongoing expenses. Add up these financial obligations to determine the total amount of coverage needed to cover these expenses.

Step 2: Consider Future Expenses

Next, consider any future expenses that your family may incur in your absence. This may include funding for your children’s education, healthcare costs, weddings, or any other major life events. Estimate the total amount of these future expenses and add them to your calculation.

Step 3: Account for Income Replacement

One of the primary purposes of life insurance is to replace lost income in the event of your passing. Calculate the total amount of income your family would need to maintain their current standard of living. Multiply your annual income by the number of years you want to provide financial support to your family. This will give you a rough estimate of the income replacement needed.

Step 4: Assess Existing Assets and Savings

Take stock of any existing assets and savings that your family can rely on in your absence. This may include savings accounts, retirement accounts, investments, and other liquid assets. Subtract the value of these assets from the total amount of financial obligations and income replacement needed to determine the additional coverage required.

Step 5: Factor in Inflation and Taxes

It’s essential to account for inflation and taxes when calculating your life insurance needs. Inflation can erode the purchasing power of your insurance coverage over time, so it’s crucial to adjust your calculations accordingly. Additionally, consider any taxes that may be owed on your life insurance proceeds. Consult with a financial advisor to ensure that your calculations are accurate and account for these factors.

Step 6: Review and Adjust Your Coverage

Once you have completed your calculations, review your estimated life insurance needs and adjust them as necessary. Consider any unique circumstances or additional factors that may affect your coverage requirements, such as potential changes in your family’s financial situation or future goals. It’s essential to regularly revisit your life insurance needs to ensure that your coverage remains adequate as your circumstances change over time.

Conclusion

Calculating your life insurance needs is a crucial step in ensuring that your family is adequately protected financially in the event of your passing. By following this step-by-step guide, you can accurately assess your financial obligations, income replacement needs, and future expenses to determine the right amount of coverage for your situation. Remember to review your coverage regularly and adjust it as needed to account for changes in your life circumstances. With the right amount of coverage in place, you can have peace of mind knowing that your loved ones will be taken care of financially, no matter what the future holds.

Life insurance is traditionally seen as a safety net, providing financial protection to beneficiaries during the policyholder’s death. However, certain types of life insurance policies also offer the potential for investment, combining the promise of a death benefit with the opportunity to build cash value over time. While using life insurance as an investment can be appealing, it’s important to weigh the pros and cons to determine if it aligns with your financial goals and risk tolerance. In this blog, PHP Agency reviews the advantages and disadvantages of investing in life insurance.

Pros of Using Life Insurance as an Investment

1. Tax-Deferred Growth
   One of the most significant advantages of using life insurance as an investment is the potential for tax-deferred growth. The cash value of policies such as whole life, universal life, or variable life insurance grows tax-deferred, meaning you won’t pay taxes on the gains as they accumulate. This feature can enhance the compounding effect, allowing your investment to grow more efficiently over time.
2. Lifetime Coverage
   Unlike term life insurance, which only provides coverage for a specified period, permanent life insurance policies offer lifetime coverage as long as premiums are paid. This ensures that your beneficiaries will receive a death benefit, providing both financial security and a potential inheritance.
3. Borrowing Against the Policy
   Many permanent life insurance policies allow you to borrow against the cash value of your policy without a credit check or loan application process. This can be a useful feature in times of financial need, as loans are typically tax-free. However, it’s important to manage policy loans carefully to avoid reducing the death benefit or risking policy lapse.
4. Estate Planning Benefits
   For individuals with significant assets, life insurance can be a strategic tool for estate planning. The death benefit can provide liquidity to pay estate taxes, settle debts, and support beneficiaries, often bypassing the lengthy probate process. Additionally, life insurance proceeds are generally income tax-free to beneficiaries.
   

Cons of Using Life Insurance as an Investment

1. Higher Premiums
   The investment component of permanent life insurance policies results in higher premiums compared to term life insurance. For individuals primarily seeking life insurance coverage without the need for an investment vehicle, the cost may outweigh the benefits.
2. Complexity
   Investment-grade life insurance policies can be complex financial products, with varying fees, charges, and rules governing the accumulation and access to cash value. Understanding these intricacies is crucial to maximizing the policy’s value, making it important to consult with a financial advisor or insurance expert.
3. Investment Risk
   Certain types of life insurance policies, such as variable life insurance, expose the cash value to investment risk. The policy’s cash value can fluctuate based on the performance of the underlying investment options, potentially leading to lower returns or loss of principal.
4. Opportunity Cost
   The higher premiums of permanent life insurance policies represent an opportunity cost, as those funds could potentially generate higher returns if invested elsewhere. Critics of using life insurance as an investment often point out that a “buy term and invest the rest” strategy may yield better financial results for some individuals.
5. Access to Cash Value
   While borrowing against the policy’s cash value can provide financial flexibility, it can also diminish the policy’s death benefit and overall value if not carefully managed. Additionally, accessing the cash value through policy loans or withdrawals may have tax implications and fees.
   

Using life insurance as an investment can offer several benefits, including tax-deferred growth, borrowing options, and estate planning advantages. However, the higher premiums, complexity, and potential for investment risk must be carefully considered. Whether life insurance is a suitable investment for you depends on your financial objectives, risk tolerance, and the need for life insurance coverage itself. Before deciding, it’s wise to consult with a financial advisor to explore how life insurance fits into your broader financial plan.

Life insurance serves as a critical financial tool, providing peace of mind and security for your loved ones in case of unforeseen circumstances. However, determining the right amount of coverage can be a complex decision. In this article, PHP agency reviews the step-by-step process of calculating your life insurance needs, taking into account your unique financial situation, family size, and future goals.

Step 1: Assess Your Financial Obligations

The first step in calculating your life insurance needs is to assess your current financial obligations. This includes:

• Outstanding Debts: Take into account any outstanding mortgage balance, car loans, student loans, and other forms of debt. Ensure you consider both short-term and long-term debts.
• Funeral Expenses: Consider the costs associated with a funeral, burial or cremation, memorial services, and other related expenses.
• Daily Living Expenses: Factor in the regular living expenses that your family will continue to incur, such as groceries, utilities, transportation, and childcare.

Step 2: Consider Income Replacement

Next, consider how much income your family would need to maintain their standard of living in your absence. This includes:

• Annual Income: Calculate your annual income, taking into account any additional sources of revenue, such as rental properties or investments.
• Number of Years of Income Replacement: Determine how many years your family would need financial support to adjust to life without your income. A common guideline is to provide income replacement for 5 to 10 years.
• Adjust for Inflation: Account for inflation when projecting future income needs. This ensures that the purchasing power of the death benefit remains consistent over time.

Step 3: Factor in Future Expenses and Goals

Consider any future expenses or financial goals that you would like to provide for, such as:

• Education Funds: Plan for your children’s education expenses, including tuition, books, and other related costs.
• Mortgage Payoff: If you wish to ensure that your family owns their home outright, include the estimated remaining mortgage balance.
• Retirement Savings: If you want to secure your spouse’s retirement, factor in the amount needed to fund their retirement accounts.

Step 4: Account for Existing Savings and Investments

Take into consideration any currently existing savings, investments, or other assets that your family could later rely on in your absence. Subtract these assets from the total amount calculated in the previous steps.

Step 5: Consult a Professional

Life insurance needs can be complex to determine, and it’s advisable to consult with a qualified insurance professional or financial advisor to ensure that it is handled properly. They can provide valuable insights, help you navigate policy options, and ensure that you choose a policy that aligns with your specific needs and objectives.

Conclusion

Determining the right amount of life insurance coverage is a crucial step in securing the financial well-being of your loved ones. By carefully assessing your financial obligations, considering income replacement, factoring in future expenses and goals, and accounting for existing savings, you can make a well-informed decision about the coverage you need. Remember, consulting with a professional can provide valuable expertise and ensure that you choose the right policy for your unique circumstances. With the right coverage in place, you can have confidence in the financial security and protection you provide for your family’s future.

As we emerge from a life-changing pandemic, more and more people are realizing the importance of life insurance.

As of 2023, interest in life insurance is at an all-time high according to the Insurance Barometer Study. About 40 percent of consumers say that they intend to buy life insurance coverage within the next year. The intent to purchase is even more significant in Millennials (50 percent) and Gen Z adults (44 percent).

Despite this, some recent PHP agency reviews say that there’s still a big gap between how many need coverage and how many have it. This is the reason why Life Insurance Awareness Month exists – the goal is to introduce, educate, and help people make the right choices about life insurance.

Below, PHP Agency reviews the significance of Life Insurance Awareness Month in educating the public about the importance of life insurance.

The Importance of Life Insurance Awareness Month

“The pandemic came just as the younger generations were just beginning their careers, getting married, and starting their family,” says head of LIMRA research (Life Insurance Marketing and Research Association) Dr. Alison Salka. “This experience has made them more aware of how important it is to protect their loved ones.”

Indeed, that is the message that Life Insurance Awareness Month, which is observed every September, aims to spread – one shouldn’t wait when it comes to getting loved ones protected.

Here are a few reasons why Life Insurance Awareness Month is important:

Education

Every September, financial advisors, insurance companies, and experts in the industry unite to spread awareness and educate the public on why having life insurance is essential. Tools, resources, and a wealth of information abound during this time to help individuals make informed decisions about their insurance needs.

Special Promotions

As part of Life Insurance Awareness Month celebrations, insurance companies offer discounts and special promotions on policies to encourage the public to get insured. This often leads to more people purchasing insurance plans and reviewing their existing coverage to take advantage of the affordable rates and added benefits.

Free Consultations

People also take advantage of the free consultations that many insurance advisors offer during this month. It’s an opportune time to get personalized advice from professionals about one’s insurance needs and determine the right coverage for their circumstances.

Community Engagement

Life insurance-related local events and community activities abound during this month to help spread awareness, providing the public with plenty of opportunities to learn, inquire, meet, and engage with insurance experts.

The importance of life insurance cannot be overstated – it serves as one’s financial safety net to provide financial protection to loved ones in the event of their passing. Many people are hesitant to talk about such an unpleasant topic, but it’s a vital aspect of financial planning that needs to be addressed.

Life Insurance Awareness Month was established to help the public shift their perspective about getting insured. Getting a life insurance plan coverage provides peace of mind that one’s family can cope financially even after they’re gone – something that simply cannot be replaced.

Any parent would say that they want to secure their child’s future, but parents can only do so much. What happens if the child grows up to be an emergency responder, regularly faced with danger?

Will they have enough funds to cover their medical bills? Will their parents have enough savings to pay for it? How is this problem prevented?

Enter – life insurance.

PHP Agency reviews why parents need to obtain life insurance for their kids.

Life Insurance Secures a Child’s Future Insurability

Ask any kid what they want to be when they grow up, and they’re likely to pick a risky occupation like firefighter, pilot, or police officer. Some kids even turn their childhood dreams into reality and become one of these brave professionals.

However, professionals in these high-risk careers often have to pay higher life insurance premiums.
Fortunately, most life insurance companies provide whole life insurance as part of their policy options. That said, if a child obtains life insurance while young, life insurance companies can cover their future risky career, dangerous hobby, or potential illness someday.

In addition to securing the child’s future career and lifestyle, life insurance covers them financially.

Life Insurance Can Also Act as a Financial Fallback

In most cases, whole life insurance also offers cash value. However, this often comes with premiums – and the guardian must pay these premiums for decades.

On the flip side, once a child becomes a grown-up, they can surrender their policy and receive the cash value in full (if none was borrowed against it). Once they receive the funds, they can use it to pay for their college tuition, first car, or first house.

Additionally, once a child is old enough, they can take ownership of the life insurance policy and continue the coverage themselves.

However, life insurance for children doesn’t solely benefit the children. Their parents or guardians can also use it in trying times.

Child Life Insurance Can Also Secure the Parents’ Future

The death of a child is heartbreaking to contemplate because losing a kid is every parent’s worst nightmare.

Sadly, death often comes with additional burdens. On top of this grief, parents must also shell out their savings for the burial – which is a financial problem they shouldn’t have to worry about.

Another benefit of securing life insurance for a child is that most life insurance companies offer a lump-sum death benefit if the child dies.

The child’s loved ones can then use the policy’s death benefit to pay for burial expenses or counseling for the surviving loved ones.

Moreover, the remaining family members can also use the payout if they own a business. This policy benefit ensures that the family does not lose money if they need to temporarily close the business to grieve.

In this situation, however, death is the worst-case scenario. The main benefit of obtaining life insurance is to help people live better lives.

All Things Considered

The purpose of child life insurance is evident: to safeguard their future.

With this, kids can enjoy childhood with an optimistic outlook on what their adulthood has in store.

To parents, this also eases their worry, as child life insurance allows their kids to live their lives to the fullest – every parent’s dream.

Public liability insurance. Legal cover. Buildings insurance. Stock insurance. All these come naturally to business owners. However, PHP Agency reviews that they tend to forget about one very important insurance type — life.

It is essential to consider how one’s business would cope if a crucial staff member became seriously ill and could no longer work, as well as to keep in mind the financial ramifications if a key stakeholder or owner passes away unexpectedly. While it isn’t a pleasant topic to ponder, it’s vital to the welfare of everyone involved in the company.

From an employee benefits perspective, life insurance can retain workers, bolstering the cruciality of the coverage for company owners.

Types of Insurance Business Owners Must Consider

Like other insurance types, company owners have various life coverage options, including:

Keyperson Insurance

Life insurance is as essential for business owners as it is for individuals. It keeps their loved ones safe during a worst-case scenario.

Otherwise referred to as business owner life insurance, keyperson insurance can keep the company afloat if an important person dies or is diagnosed with a critical illness.

Generally speaking, the coverage protects one pivotal person within the enterprise, typically being the founder or chief executive. However, some companies also insure employees that have skills crucial to success (e.g., top salespeople).

The main difference between keyperson insurance and standard life coverage is that the payouts can only be used for the continued running of the business. This includes debt repayments or the costs associated with recruiting new staff members.

Directors’, Owners’, and Shareholders’ Business Life Coverage

Business owners need to consider the events that could occur if another owner, shareholder, or business partner died or couldn’t return to work. Historically, such situations have caused considerable difficulties and disputes within the remaining group, hindering the overall success of the company.

In a similar fashion to keyperson insurance, shareholder coverage protects from the aforementioned result. For example, the funds could be released to help buy out the shares of the departed shareholder.

Group Life Insurance

Group life insurance is an easy way for business owners to offer coverage to a (sometimes large) number of staff members. Every worker has the same terms and can normally take advantage of group discounts.

Offering the proposal can be a real benefit for company owners — they’ll have an easier time attracting and keeping valuable employees, and the staff who utilize the benefit will know that their loved ones are protected in case they pass away unexpectedly.

Life Insurance Tax Benefits for Company Owners

While life insurance is a necessity regardless of tax benefits, owners who offer group programs can normally claim the premiums as tax deductible. It’s worth noting, though, that this might not be the case with shareholder and keyperson insurance.

While these payments can sometimes be tax deductible, it really depends on a myriad of factors. Particularly on how the payout proceeds would be utilized by the company. Curious owners should talk to their financial planners to find out more about this area.

Ultimately, life insurance is essential to business owners, as it increases employee retention and ongoing success even after they pass or lose the ability to work.

Life insurance provides beneficiaries with a lump-sum payout once the policyholder dies. But, unbeknownst to many, it replaces more than just lost income. After all, every 40-year-old should have some type of coverage, even if they aren’t working.

PHP Agency reviews that people approaching middle age often put off acquiring the imperative policy because they don’t know how to calculate the amount they need. Luckily, with a little bit of research and effort, it can really be quite easy.

Calculating Life Insurance Needs

The challenging part about calculating life insurance is that there is no “one size fits all” method. Financial planners tend to suggest methods aligned with their client’s family obligations, the standard of living they want to give their loved ones, and the amount of debt they have.

The most popular methods for working out how much life insurance a 40-year-old should purchase are as follows:

Final Expensive Coverage

Final expensive coverage is a small death benefit that helps the surviving family members cover the costs of funerals and burials or cremations.

On average, funerals cost between $6,971 and $7,848. However, this can quickly ramp up if relatives decide to host a wake, purchase flowers and other adornments for the coffin, and more. So, people opt to take out a life insurance policy that covers these exorbitant fees.

However, most term life providers won’t allow policies this small. So, wannabe policyholders will have to choose a permanent life coverage plan, like universal or whole life insurance.

Ten Times Yearly Salary

This is perhaps the easiest way to calculate how much life insurance to take out at age 40 — policyholders just multiply their yearly earnings by ten.

For single adults, this is a good benchmark rule to use.

For example, in California, a non-smoking, healthy 40-year-old female making $50,000 per year could get a 20-year policy with a death benefit of $500,000 for $30 a month.

Ten Times Yearly Salary Plus $100,000 Per Child

Mortgages and other massive debts can consume a six-figure payout easily, making ten times yearly earnings smaller once expenses are considered.

So, some 40-year-olds with children multiply their incomes by ten and add $100,000 per child to the figure.

D.I.M.E

The Debt Income Mortgage Education method involves:

• Finding the total value of debt, including outstanding mortgages
• Adding the policyholder’s expected income until every child reaches 18
• Adding children’s education costs.

The average 40-year-old has roughly $350,000 in mortgage debt without student loans, credit cards, and/or other personal loans, like car or home equity loans. With two children and a modest salary, many people decide to get a $1 million life insurance policy.

The Bottom Line: Everyone Should Consider Obtaining a Life Insurance Policy

Individuals should consider acquiring life insurance as soon as possible if they have others who depend on their income or non-financial work (e.g., cooking, cleaning, etc.) to survive. But it’s never too late to get coverage.

Everyone in their 40s should have a life insurance policy to financially protect their families upon their untimely death, ensuring they can cover debts and funeral costs, and still have some money left over.

Life insurance is often viewed as a far-off solution to the gloomier “what-ifs” of later life. Yet, by viewing it this way, American families often miss out on the potential benefits of using insurance as support for their existing financial plans.

When used appropriately, PHP Agency reviews that life insurance can help immensely with covering long-term goals, such as retirement or the costs of college tuition. It can also grant financial freedom to those who would otherwise be left dependent on the deceased’s remaining estate. To better understand these benefits, how life insurance works and how to diversify a portfolio using a new insurance policy is detailed below.

The Basics of Life Insurance

Life insurance is a legally binding contract between an individual client and an insurance company. By signing such a contract, the insured client agrees to pay a monthly sum to the insurer with the understanding that, should they pass away, the insurer will pay out an agreed-upon sum in full to the insured’s remaining family, dependants, or other specified individuals.

These funds can then be used to cover funeral costs, outstanding debts, medical bills, and other living expenses. Many families also use this money to supplement lost income, cover tuition fees, and contribute to a sense of financial security after a loved one has passed.

Building a Stable Financial Plan

Although life insurance should make up a part of all comprehensive financial plans, it’s important to consider long-term goals and objectives before investing in any policy. With these goals in mind, the insured party can then formulate an outline for how they will reach their desired financial future.

This plan should include a budget that accounts for current and expected expenses, as well as an investment strategy to better gauge the amount of financial flexibility or support they may need from a policy. With these factors in mind, they can then make an informed decision about what to choose.

Incorporating Insurance

After drafting a comprehensive financial plan, policyholders can also use their insurance to diversify their portfolios. Ideally, they should find the policy that costs as little as possible while also offering the highest amount of coverage. Of course, the exact policy they need will depend on personal financial goals and considerations as well.

For example, if a policyholder intends to supplement their partner’s future retirement savings, they would be better off purchasing a permanent life insurance policy. If they only intend to cover future funeral expenses, however, then a term life insurance policy may be more affordable and come with more flexible terms.

The Bottom Line

Life insurance is more than just a last resort—it’s an important part of a comprehensive financial plan. Not only can it help to provide financial security during difficult times, but it can also help families to reach their long-term goals. Of course, policyholders should carefully draft blueprints of their financial futures and invest in policies that are best suited to their personal needs. Only then can they start to invest wisely.

Life insurance is generally advantageous for many adults. Thanks to the typically minimal costs, policyholders can ensure that loved ones have a financial safety net once they die.

Even though the benefits of this coverage are typically well-known, seniors are often left out of the equation. For older adults, life insurance isn’t usually deemed “worth it” due to the increased monthly premiums.

However, PHP Agency reviews that this doesn’t mean all seniors don’t need it. On the contrary, in certain situations, it can be beneficial for older adults.

Three Reasons Why Seniors Should Obtain Life Insurance

This type of coverage can supplement savings or fill a financial gap for most adults, including seniors in the following situations:

Life Insurance Helps Cover End-of-Life Expenses

While most adults obtain life insurance with payouts in the six- to seven-figure range, those who are only looking to cover end-of-life expenses won’t need that much.

Experts suggest around $20,000 or less for burials and funeral costs, so seniors can expect to secure life insurance coverage for reasonable monthly premiums.

Older adults should think realistically about their end-of-life requirements. After all, burdening loved ones is something most people want to avoid. So, a life insurance policy can prevent this from happening in case seniors don’t have enough home equity or savings to cover such costs.

Those With Debt That Will Outlive Them Should Consider Life Insurance

People should seek complete understanding of their personal financial circumstances before acquiring life insurance for this reason. Often, seniors choose to seek assistance from financial advisors.

Debts like mortgages, personal loans, and outstanding credit card balances are carried over to heirs when people die without enough money to cover them. Therefore, some older adults choose to take out life insurance policies that cover their debts, ensuring their relatives won’t need to pay them instead.

As mentioned, not everybody requires life insurance for this reason. Even mortgagees with balances can be valuable once the outstanding amount has been removed.

However, seniors concerned that they’ll leave loved ones with their remaining bills should seriously think about getting a life insurance policy.

Life Insurance Provides Inheritance

Older adults with limited home equity and minimal savings choose to take out life insurance coverage to give their beneficiaries inheritance (regardless of the amount). After all, this is the main reason that anybody obtains life insurance!

Naturally, senior policies aren’t going to be robust, and they’re more expensive than those for younger adults. However, it allows older people the chance to leave a nest egg for their family.

Underlying Health Conditions and Life Insurance

Those who relate to the three situations above should consider their underlying health conditions (e.g., obesity, mental health concerns, cancer, diabetes, asthma, and heart disease) before applying for a policy.

Some providers aren’t able to offer coverage to those with certain medical conditions, and those that do tend to boost their premium payments, making them more expensive.

That being said, seniors shouldn’t immediately rule out life insurance, as it can be incredibly beneficial for those they leave behind.

Today’s top talent wants more than a stable career—they also want comprehensive benefits complete with insurance and retirement plans. Whereas traditionally this would have meant health insurance, businesses are now realizing the power and importance of also offering term life insurance. By meeting their employees’ needs, companies can boost worker satisfaction, retention, and recruitment.

For nearly 47% of Americans, life insurance is a luxury they can’t afford. Yet this doesn’t mean that their families don’t want or deserve coverage. PHP Agency reviews how employers are helping to fill the life insurance gap and how it’s benefiting their recruitment processes and employee morale.

Life Insurance is a Low-Cost/High-Value Benefit

Employees already spend the majority of their waking days getting ready, commuting to, and then working in an office. With such a time commitment, it’s only fair that they expect some benefit to compensate for their lives spent in employment. While vacation time, health insurance, and retirement packages have traditionally been the gold standard, employees are now recognizing the importance of life insurance.

To workers, life insurance is about more than just the coverage itself, though. It’s a sign that their employer cares about them and their families. In the event of their death—even if unrelated to work—life insurance provides financial stability for loved ones who are left behind.

From a business perspective, it also makes sense. Compared to health insurance policies, a term-life plan is relatively inexpensive, especially when bundled into an office-wide program. Yet, to employees, it’s a high-value benefit that’s powerful enough to keep them onboard and productive.

Life Insurance Increases Retention and Recruitment Rates

By staying ahead of the competition and attracting the best talent, modern businesses must provide comprehensive benefits with built-in life insurance. This is especially true for small businesses and startups, who often need to get creative to lure in experienced workers. While some companies may be hesitant to spend the extra money on benefits like life insurance, doing so more than pays for itself in the long run.

In fact, research shows that offering life insurance can lead to a decrease in staff turnover rates. It’s also been proven to be an effective recruitment tool. After all, life insurance is a major factor of employees’ financial health. By guaranteeing current and potential workers that their families won’t be thrown into financial crisis if they die, you show that you value their worth beyond a monthly paycheck.

This is far more alluring to new hires and existing staff than a corporate retreat, holiday party, or any other non-financial benefit. In the end, employees are there to cover their financial needs. Life insurance helps meet those needs and creates an environment where staff can trust their management and feel safe in the long-term.

The Bottom Line

By offering life insurance is a smart business decision. Not only does it show that you care about your employees’ families and finances, but it also helps to boost company-wide morale, worker retention rates, and new hires. Best of all, it is what employees want and, by bundling policies, it’s relatively inexpensive.