Image: ssguy/Shutterstock.com

Since the 1940s, employer-provided life insurance has been a staple of company benefits packages. These are typically group policies packaged by licensed benefits brokers who specialize in creating benefits packages for employees, and the policies usually provide guaranteed coverage and payouts for the insured’s beneficiary.

While group insurance policies are easy to put together and available to all employees at an organization, they have some major downsides. For a start, most group policies tend to be one-size-fits-all with limited customization, which may not suit employees with specialized needs.

Another issue is the meager payouts, often between $10,000 and $50,000, amounts that typically wouldn’t even cover one year’s salary for the family of a departed insuree. Perhaps the worst issue with group policies, from an employee’s perspective, is that coverage doesn’t transfer when an employee switches employers.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.