Many Employers Are Not Offering Life Insurance Anymore
For quite some time, life insurance plans were commonly offered in the benefits packages of many companies. And on multiple occasions, a great life insurance policy was a major determining factor for quite a few potential employees. However, in recent years, many researchers have noted a significant drop in the number of companies that offer life insurance to their employees.
According to the new LIMRA research, approximately one in four small employers are no longer including life insurance plans in their benefits packages to employees. As life insurance was often considered ‘the bedrock’ of the benefits package, experts had to do some extra digging to see why more and more companies were taking life insurance out of their benefits packages.
Why the Drop-in Life Insurance?
The drop in life insurance coverage has grown exceedingly popular across of variety of companies. However, the largest drop has been noted in smaller companies.
Researchers discovered a 37% drop in insurance coverage within companies of 10 to 19 people and a 30% drop in companies with 20 to 99 employees (source). Additionally, 19% of companies with 100 to 199 employers also no longer offer life insurance in their benefits packages. In further research, LIMRA discovered that employers offered an average amount of 7 benefits to their employees in 2017. This is down from the 8 that was logged in 2014. In their findings, only one in 10 employers who offer insurance benefits plan to add an extra benefit in the following year. Experts believe that this significant drop in company life insurance policies is due to a lack of product awareness, as well as an adjustment in priorities among employees of younger generations.
In concurrence with the discovered data, Tom Wamberg, CEO of Wamberg Genomic Advisors and former president of the Association for Advanced Life Underwriting, explains, “The old adage goes: Life insurance has to be sold, it’s not bought…nobody thinks they are going to die. How do you get to the millennials? What product really appeals to them?” Tom Wamberg has a very valid point: how do we sell something to a group of consumers that don’t believe they need it? In their youth and liveliness, younger generations don’t initially believe they have a need for life insurance policies. Not to mention, younger generations already have debt–student loans, credit cards–that they want to pay off first before they decide to invest in life insurance.
Another reason why fewer employers are offering life insurance to their workers is due to their lack of knowledge in its financial intricacies. Many employers won’t offer it simply because they believe it would cost them far too much money when in reality, the cost is actually modest.
A More Personal Approach
However, in light of the decrease in employer-paid life insurance policies, there are a few smaller markets that are trying to stop this decline. Many life insurance companies have started to take a more personal approach to selling this benefit by offering one-on-one discussions, agent to the individual. Many agents will make their way to different companies to thoroughly explain the benefits of life insurance. However, although we are in an improving economy, many employers are set on implementing a more restricting strategy for benefits packages.
Life Settlements For Unwanted Policies
While it is true that many employers aren’t offering life insurance anymore, it is also true that priorities change for many people. If you no longer wish to keep your life insurance policy, contact us for a life settlement. Selling your life insurance policy for cash is simple with Life Settlements Inc.