Lack of availability ofvoluntary life insurance options offered by employers was by farthe biggest reason that workers said they did not have this type ofcoverage. (Photo: Shutterstock)

A new survey finds that employees are interested in buyinglife insurance as a voluntary benefit, but manydon't—because their employers don't offer it.

The survey, conducted online by The Harris Poll onbehalf of insurance group OneAmerica, polled more than 2,000 U.S.adults 18 years or older, among whom more than 1,000 are employedfull- or part-time.

Related: How to reach today's potential life insurancebuyers

The results of the survey showed that 27 percent of respondentshave voluntary life insurance. Of those who don't have thatbenefit, 68 percent say they would be somewhat or very likely topurchase life insurance—if their employer offered it.

“September is Life Insurance Awareness Month, and theinformation gathered by The Harris Poll provides further proof ofthe strong desire for employed Americans to have access tolong-term solutions to protect the financial future of theirfamilies,” said Jim McGovern, senior vice president of employeebenefits at One America. “For most employees, the workplace is theonly opportunity they have to purchase life insurance.”

Among the findings of the survey:

• Male workers are significantly more likely to have voluntarylife insurance products. The survey found that 31 percent of menhad purchased voluntary life insurance products through theiremployer, compared with 23 percent of women workers.
• Workers tend to purchase lower-value plans. The survey foundthat 30 percent of those with voluntary group life insurancethrough their employer reported they have more than $100,000 inlife insurance coverage. Again, men were more likely to purchasethe higher level of coverage. The second-most popular coveragewindow was the $51,000 to $100,000 level, with 28 percent ofemployees purchasing that level of coverage.
• Lack of availability of voluntary life insurance optionsoffered by employers was by far the biggest reason that workerssaid they did not have this type of coverage. Only 11 percent saidthey thought the coverage would be unaffordable; 13 percent citedother obligations or expenses; 11 percent said they did not see thevalue of such coverage, and 10 percent said they were healthy anddid not need it. But nearly half, 48 percent, said the reason theydid not have this type of coverage was because their employer didnot offer it.

According to McGovern, life insurance is one of the mostimportant employer-offered benefits for the financial wellness ofmiddle America. “Companies who offer voluntary group life insurancekeep their own benefits costs low and give their employees avaluable, lower-cost life insurance option than the employees turnto in the individual insurance marketplace,” he said. “Manyemployers believe that group life insurance isn't something thatwould attract the type of workers they're looking for, but as oursurvey shows, that's untrue. We need to do more to educatecompanies and workers on this valuable and cost-effective corefoundational benefit.”