September is Life Insurance Awareness Month

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The month of September is Life Insurance Awareness Month coordinated by Life Happens. This is an industry-wide campaign to educate Americans about the importance of life insurance and helping them get the coverage they need. According to the 2016 Insurance Barometer Study by Life Happens and the Life Insurance and Market Research Association, 1 in 3 households would have immediate trouble paying living expenses if the primary wage earner died.

Life insurance has many different purposes, more than just helping loved ones handle daily expenses after a death. With life insurance policyholders can leave a legacy. Ways to do this include making a significant donation to a charity or cause, ensuring that children or grandchildren will be able to go to college and create a scholarship fund or other endowment.
There are different types of Life insurance that can be offered to employers and their employees. These include:

Term-Life Insurance provides protection for a specific period of time, or term. Most often, you will see it offered in 10-, 15-, 20- and 30- year terms. The premium does not change throughout the term. If the insured person dies during this period, the beneficiaries receive the proceeds income tax-free. At the end of each term, the insured may renew the policy, generally with a higher premium.
Whole Life Insurance builds value which the policy holder will know the exact cash value of your policy on each policy anniversary. The policy holder can choose to take a loan or withdrawal from the policy. However, if they choose to do so, the cash value and death benefit will decrease.
Universal Life Insurance earns a fixed interest rate on the cash value in the policy. While the interest rate may change over time, it will never dip below a guaranteed minimum rate.

Though many employers and their employees may already have life insurance, this month is a good time to remind everyone to check on their policy to make sure it still fits their needs. Marriage, having or adopting children or other life events can greatly impact the amount of insurance needed. For those who do not already have life insurance, the first step is to get quotes on policies and choose one. Finally, even if the policy holders deem that they have plenty of coverage, they may still want to suggest looking at other policies as they may find similar coverage for less.

 

Communicating Your Benefits

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Open enrollment can be a stressful time for employees and employers alike. Studies show that more than one-quarter of employees don’t understand the benefits offered by their company, while one half wish there was a simpler way to enroll. One of the most effective ways to reduce stress and boost enrollment is to clearly communicate what benefits are offered, how to enroll, as well as a timeline for enrollment. Simplifying and clarifying the benefits offered and the enrollment process aids employers and employees, saving time, frustration, and money .

Here are a few ways to communicate with your employees about open enrollment:

Consider Going Digital – Though sometimes it is helpful to have a piece of paper or booklet to flip through, more often than not, you’ll simply be adding yet another piece of paper to your employees’ already-crowded desks. Instead, consider going entirely digital. You can replace letters, posters, and flyers with emails or links to online content. You’ll save money on paper and ink but your employees still have access to the material they need.

Explain Why – Present what benefits are offered along with why they are important and valuable to your employees. In addition, this is an excellent time to promote healthy lifestyles, along with any wellness programs that your company offers.

Explain Changes – Introduce changes in carriers and explain if/why premiums have changed or increased from the prior year. Telling your employees why these changes were made and how it works with their best interests in mind will keep them feeling in the loop.

Utilize Multimedia – By repeating the benefits offered through different mediums, you can ensure that your employees have a greater understanding of the benefits and plans being offered to them, so that they can make the right choice for themselves and their families. Videos and webinars are two excellent ways to communicate benefits, with content available year-round to answer any questions that might arise.