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.

 

Choosing a Third-Party Administrator

hr-outsourcingOver the past few years there has been a steady rise in outsourcing of HR benefits responsibilities; this is due largely in part to healthcare reform. Many companies do not have the time or manpower to stay up-to-date with the newest laws and requirements brought on by the Affordable Care Act.

Mistakes made within companies can lead to a lapse in coverage for the employee, and companies can incur large fees from penalties when mistakes are made when it comes to benefits administration and payroll. Therefore, more companies are reaching out to third party administrators to help handle the load.

Listed below are a few tips and aspects to consider when choosing a third-party administrator to handle benefits and payroll responsibilities.

  • Do your research, know what policies your employees have enrolled in and put together packages that can be combined to create the perfect plan for them and their family.
  • Is the company you’re outsourcing to available for questions before and during enrollment and will the employee be able to find information via a website or brochure?
  • Have an information session to educate your employees about the products offered along with a benefits representative available to answer questions they may have regarding the policies available.
  • Although the responsibility may be in another company’s hands, you want to have someone within your company trained and knowledgeable in the options available.
  • Be available to add a helping hand and answer question and step in if there are any problems with the benefits administrator or enrollment process.

Keeping your employee’s in mind when choosing the best resource for benefits administration is important. You want to make sure you save money but also give the best user experience possible. The burden of benefits administration and payroll can be outsourced and take the stress off your company and keep the focus within your own company.