As a follow-up to previous blogs on employee benefits, I wanted to focus on Life Insurance.

Most organizations provide life insurance to their employees. However, very few maximize the value of the employee benefit for their organization.

1. What is the purpose of offering the benefit?

2. How does offering the benefit create value for the employee?

3. How does offering the benefit create value for the organization?

4. What is the cost benefit analysis for your organization?

5. What measure has the organization taken to ensure that the benefit is accomplishing that for which it was intended?

A. To maximize the use of Life Insurance, use automatic enrollment procedures with an op out form. (Organization pays 100%)

B. Have a policy in which the employee’s estate and organization are both beneficiaries. (The incremental cost to increase the benefit from a basic $5,000 is minimual)

C. Remember when a death occurs, there needs to be time for a family to recover. Therefore it is better to have a value that provides three-six months of the employee’s net. Look into group life policies. For more information, contact your insurance broker or contact contact Matt Hedges, Great Harbor Benefits, 508-540-7940 x 11 or email him at ghbcapecod@aol.com.