A survey conducted on behalf of OneAmerica by Harris Poll revealed 68% of workers would be somewhat or very likely to purchase voluntary group life insurance if it was offered by their employer.
The survey comes as Life Insurance Awareness Month is being recognized in September, which highlights the need for this type of coverage. With voluntary life insurance, businesses give their employees optional life insurance which they have to pay for.
Whether it is the workforce of small or large businesses, oftentimes employees don’t consider life insurance as an option. However, with a tight labor market more organizations are making provisions to make life insurance available in different forms as an incentive.
As Jim McGovern, senior vice president of employee benefits at OneAmerica said in the press release, “For most employees, the workplace is the only opportunity they have to purchase life insurance.”
According to McGovern, providers have to make more of an effort to help employers understand the value of providing life insurance. He goes on to say, “Many employers believe that group life insurance isn’t something that would attract the type of workers they’re looking for, but as our survey shows, that’s untrue. We need to do more to educate companies and workers on this valuable and cost-effective core foundational benefit.”
The survey was conducted online by Harris Poll for OneAmerica with the participation of 2,023 U.S. adults ages 18 and older from July 26-30, 2018. Of these, 1,054 were employed either full time or part-time.
More Voluntary Group Life Insurance Statistics
The survey revealed 73% of workers did not have voluntary group insurance through their place of work citing it was not affordable, they didn’t see value in it, or they had other obligations. But by far, the biggest reason at 42% was because their employers did not offer it. For adults between the ages of 35 to 54, the rate jumped to 48%.
When the insurance is available men are more likely to get insured through their employer with a 31% to 23% margin. And men also bought more coverage of over $100,000 at 33% to 24%.
As to the reason why employees bought insurance, respondents said to protect family/loved ones from future financial hardship at 60%. Another 44% said for peace of mind followed by for 40% who want it to pay off debts and final expenses when they passed away.
The need for life, health, home, business, or vehicle insurance is undeniable, but for many Americans, it is not always possible. Many different factors go into this, with cost playing a big role.
By offering voluntary group life insurance as an option, small business owners can give their employees a much need resource for ensuring their future and that of their family.
Photo via Shutterstock
So what are businesses doing by not offering this to their employees?