Reasons for employers to buy their employees life insurance
1) Tax Benefits
Life insurance benefits through an employer (up to the amount of $50,000 per individual) are tax free to the beneficiary and tax deductible to the employer. This allows the employer (if he/she is an employee of the company) not only to tax deduct his/her own policy from the company, his/her beneficiary also will have tax free cash.
2) Guaranteed Issued and Not Costly
Life insurance benefits through a company can be guaranteed issued, so there are no medical questions to fill out. Group term life is worth it.
There are some policies that have a rider that will extend a coverage amount to a spouse and dependents, thus, covering dependents in the case of a tragedy and lifting the financial burden off of the surviving family members.
4) Final Expenses
Final expenses can be quite costly. Having coverage can lift the financial burden off of the surviving family members. A funeral can average four thousand dollars and up. Some surviving families cannot afford the costs of a decent burial. It can also help with the cost of medical bills and mortgages. Insurance is vital for anyone who is interested in having sound financial security. Emergencies and tragedy is a part of life that we all must be prepared to deal with.
5) Eliminates Employer Burden
Many employees do not have life insurance unless it is provided through an employer. Providing your employees with health insurance will eliminate the burden felt toward an uninsured employee’s family in the event of death.
**A few dollars a month can provide thousands of dollars in benefits**