Life Insurance Awareness Month: Employers Can Help

LIMRA found that 42% of American adults either needed life insurance or needed to obtain more life insurance coverage.¹ Employers can support their employees in securing life insurance by educating them about the group life insurance options available through their workplace. 

Life Insurance Perceptions 

One of the biggest misconceptions about life insurance is the cost of coverage. Many Americans continually overestimate the cost of life insurance. This misconception can deter individuals from seeking the coverage they need. In addition, LIMRA has found that many workers covered under employer-paid life insurance plans are not aware that they are covered through their work.² Without clear communication, employees may not realize the full value of their benefits and may miss opportunities for valuable coverage. 

Remember, employer-sponsored life insurance is among the most cost-effective options available for employees looking to address their life insurance needs. 

What Employers Can Do to Increase Awareness 

Employers providing a base amount of life insurance for their employees should clearly communicate this benefit to employees to ensure they are aware of the life insurance coverage being provided. Keep in mind that this base amount of coverage may not be enough coverage for many employees. Offering the option to purchase additional coverage empowers them to choose the level of protection that best fits their individual needs. 

When offering voluntary coverage, employers should clearly state the premium cost per pay period. Including premium grids or calculators in enrollment materials can help employees easily see the cost for specific amounts of life insurance coverage. These resources can help an employee quickly understand the amount they will be paying for coverage. Online calculators can help employees estimate how much life insurance to purchase. 

It is important to begin providing enrollment materials at least 30 days prior to an enrollment event. This provides time for individuals to fit benefits planning into their busy schedules. Follow up with ongoing benefit communications during the one to two weeks leading up to the enrollment period, along with consistent reminders during the enrollment event. A communication plan ensures that the benefits information stays fresh in employees' minds. 

Providing benefits information through several different communication channels such as emails, printed materials, benefits meetings and videos is more effective for employees. LIMRA found that the top 3 most helpful resources for benefits education include in-person one-on-one meetings, online communication (via the internet, intranet or benefits portal) and in-person group meetings.³  

Don’t forget to communicate about life insurance when life events happen — such as marriage or the birth of a child — as coverage needs can change. This reminder can help employees maintain an appropriate amount of coverage. 

Key Reminder 

Life insurance is an important part of financial wellness. By effectively communicating the availability and value of life insurance, employers can help their employees make informed decisions that contribute to their overall financial security.