How Insurance Benefits Can Boost Business Morale

As a business owner, you will inevitably face the decision of whether or not to offer your employees insurance coverage. In deciding which insurance coverage is best for your business, you’ll need to consider both the costs and benefits that life and disability insurance may bring to your company.

How Life Insurance Works

Serving as a contract between a policyholder and an insurance company, life insurance guarantees a sum of money to designated beneficiaries following the death of an insurer. Premium payments are made by the policyholder within the term of coverage, either in full or routinely. Oftentimes, capable businesses will offer employees life insurance coverage as part of their benefits plan.

How Disability Insurance Works

Disability insurance can make a considerable difference in an employee’s wellbeing by helping pay for any lost income when a disability affects their ability to work. With this coverage, employees receive between 60-80% of their regular monthly salaries and wages, depending on the terms and conditions of the policy.

Business Benefits to Providing Coverage

By providing life and disability coverage, businesses can assume these potential benefits for their workplace:

• Higher recruitment rates
• Increased employee retention
• Boosted employee morale
• Strengthened competitive position

Navigating Insurance Expenses

Despite the fact that business owners are free to share the premium cost of coverage with their workers, most employers pick up the entire bill. According to the Bureau of Labor Statistics, 85% of businesses that offer coverage pay for all of the premiums for short-term policies and 96% for long-term policies.

As an alternative, a group disability plan that provides both short- and long-term benefits can serve as a recruitment and retention incentive. Further, sweetening existing plans in the short term might also act as an option if the comprehensive approach is too expensive.

Should You Offer Life and Disability Insurance?

Without a doubt, disability insurance can be critical for employees but equally as expensive for small business owners. Although enacting insurance plans may be costly, offering employees access to policies can help attract and retain top talent. Before opting for any life or disability policy, talk to your insurance provider for cost estimates.

Find Coverage That Works for You

For more information on choosing coverage that best suits your business goals, call the experienced Insurance Lounge team at (541) 479-4975, or visit one of our four storefronts throughout Oregon