by Tom Snow

Why Should I Communicate With My Employees About Life Insurance


With my 9+ years  working with individuals and businesses one thing is very common between them.  Employees (individuals) are continually looking at their employers as their main source for support, education, information, and advice on how to appropriately manage not only their “work” life but also their “personal” life.  Employers realize that employees are their most valuable asset, and with the landscape of health care changing, managing the bottom line is ever so crucial for them.  Employers are challenged with trying to stay creative in assisting their employees with their work and personal lives.  One of the ways our organization has evolved is not just approaching this by paying or buying something.  We have created a culture of education.  Some of which is work related, but the other side is providing resources that assist people in managing their life at home.  These are typically not benefits the employer pays direct dollars towards.  Instead the employer pays by giving the employees time during work hours to have access to these events.  It could be at a morning staff meeting or a lunch n’ learn.  These are typically not mandatory, but participatory for employees that are interested and will find value.

One of the topics we started with was life insurance.  Now, I know what you are thinking.  They are just trying to sell me a policy.  This is very far from what we are trying to achieve.  The goal of the educational events is to create awareness, and eliminate misconceptions.

Now you are going to ask – Why?  This all goes back to your business and your employees being the biggest asset to you.  A 2013 LIMRA study showed that 30% of households have no life insurance at all, 44% have individual life insurance, and 50% percent say they need more.

Now with that said, take a look at your employees and ask yourself – “how would they weather a catastrophic event in their household?  How will they maintain focus on the job?  How will their children be cared for?  Will I lose a key employee, or will that employee be seeking additional benefits and assistance?”

The next question is – Why aren’t they buying?  A 2012 LIMRA study indicated that 6 in 10 consumers don’t recall being approached to buy life insurance in the last two years, and consumers overestimate the cost by as much as three-fold.  Aside from buying life insurance; creating an environment where you help someone understand the risk they face when a  primary household member can no longer contribute to the  financial wherewithal for that family is ultimately the 1st step.  That person may not have taken time to purchase insurance or decided against it, but maybe they decided to take an avenue of self-insuring and put a larger focus on saving for a rainy day or investing more into their retirement.  The purchase of an insurance policy is just one of many ways to manage this risk that all employees face.

The final thought is – What can we do about this?  A suggestion would be looking at creating a survey for your employees about different topics they would like information/education on.  It does not make sense to put information in front of them that they are not interested in.  The second would be to work with your insurance professional and ask if they provide this service.  Our team has done many educational events for our clients.  If you are having challenges with new ideas or have employees asking for educational opportunities, please give us a call and we can discuss a plan to get started.

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