Survey: Not from lack of interest… Employers are just not offering it
Indianapolis, IN (August 31, 2017) When asked if they had auto, health or home insurance, 80 percent of Americans say they have at least two of these. But over half of employed Americans (55 percent) don’t have voluntary group life insurance provided by their employer.
In a March 2017 survey conducted online by Harris Poll on behalf of OneAmerica®, only 45 percent of employed Americans claim to have voluntary group life insurance provided by their employer. But the survey of 2,167 U.S. adults ages 18 years or older1, among whom 1,110 are employed, showed that it wasn’t because of a lack of interest. Instead, the survey found that many employees who do not have voluntary group life insurance provided by their employer say their employer doesn’t offer it (45 percent).
Less than half of employed Americans (45 percent) have voluntary group life insurance provided by their employer. Among those who don’t have voluntary group insurance provided by their employer, only a small percentage (9 percent) said they had other obligations or did not see the value in it (14 percent).
For many, workplace is only option to buy
“More and more Americans are realizing the value of group life insurance for their families and their financial futures,” said Jim McGovern, senior vice president of employee benefits at OneAmerica. “For most middle America families, the workplace benefits meeting is the only opportunity they have to purchase life insurance.”
Life insurance is one of the most important types of insurance coverage available to support long-term financial security. Being covered can protect loved ones’ financial futures in the case of death. Companies who offer voluntary group life insurance keep their own benefits costs low and give their employees a valuable, lower-cost life insurance option than the employees would find in the individual insurance marketplace.
OneAmerica has companies that offer employer-paid and voluntary term life insurance (where the employee pays for the life insurance benefit, but receives a group rate.) In Eastbridge Consulting Group’s 2016 U.S. Voluntary/Worksite Sales Report, OneAmerica was the fastest-growing company in the small carrier category ($10 to $50 million in sales.)
For group life, a ‘notable interest’
“A lot of employers think 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 widely untrue,” McGovern said. “Even among younger people, the survey shows that there is notable interest in being covered under group life insurance. We need to do more to educate companies and workers on this valuable and cost-effective core foundational benefit.”
OneAmerica encourages employees to check with their human resources representative about voluntary group life insurance coverage; sometimes employees discover this vital benefit is available from their employer but got overlooked during open traditional enrollment periods or immediately after a hire, when they were selecting benefits.
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