September is Life Insurance Awareness Month
To reinforce the value and purpose of insurance, the Life and Health Insurance Foundation for Education (L.I.F.E.) sponsors an annual campaign about the importance of securing a family's future in the event of a breadwinner's death.
To learn more about the basics of life insurance and find ideas for promoting it to employees, visit lifehappens.org.
Employer focus
Take another look at group life insurance
Today's economic climate has forced employers and employees alike to rethink their financial strategies. As companies consider downsizing, trimming benefits, and other cost savings measures, consumers are also seeking ways to save money. Many Americans have lost money, or worse – their jobs – in the economic downturn. In times of employment uncertainty and penny-pinching, affordable life insurance protection is more important than ever.
Voluntary group life insurance stands out as a product that is cost-effective and attractive to both employers and employees. It not only provides employers with a way to enrich their benefit offerings, it also offers employees an opportunity to increase their coverage and take advantage of features like portability and cash accumulation. Portability allows employees to continue their group coverage and pay group rates (which are generally lower than individual policies) after they retire or are laid off from work. In today's shaky marketplace, portability is especially valuable. Losing a job doesn't have to mean losing a policy.¹
According to a recent study by LIMRA International, consumers are looking to the financial services industry for honesty, information and advice², while employers are seeking products for their employees that instill trust and confidence. Group life insurance plans can be designed to offer reliable, affordable protection for the whole family. For consumers who desire security in insecure times and must reduce debt and save for retirement, life insurance provides strong guarantees and solid financial protection.
Despite the need, 68 million Americans are still without life insurance.³ According to LIMRA International, one third of adults in the United States carry no life insurance at all, and those with group life insurance carry the lowest amounts.4 People often think they cannot afford life insurance or are unsure of how it fits with their financial plan. Offering employees basic information about Common questions about life insurance is the first step toward a better-informed employee population. Carriers can assist with updates and information about plan design and tools, such as Minnesota Life's online needs calculator.
Because of its simplicity and necessity, group life insurance is still the [voluntary] product most commonly offered by carriers today.5 Minnesota Life makes it easier than ever for employers to offer this critical benefit – with "real time" medical underwriting, competitive rates and streamlined administration. Last year, $1.2 billion in death benefits were paid to group life insurance beneficiaries on coverage underwritten by Minnesota Life Insurance Company. These payments provided choices, options and control at a time when it was needed most to overcome the financial impact of losing a loved one. To learn more, contact your regional group sales manager or visit lifebenefits.com.
Resources
¹ Whiddon, Robert. "Crumbling coverage." Employee Benefit News. May 1, 2009.
² Douglas, Jennifer and Kallenbach, Scott. "What Now? LIMRA Market Facts Quarterly. Spring 2009.
³ Gresham, David. "Play up: The tax benefits of permanent whole life." Life Insurance Selling. June 2009.
4 Generations at risk, Life Insurance Fact Sheet. LIMRA International. September 2008.
5 Traynor, Marty. "Time for voluntary term life." Benefits Selling Magazine. July 2009.
