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Group Life Insurance

Take care of your people, and they’ll take care of your business.

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Spotlight on: Group Life Insurance

Offering group benefits for employees can be a great way to improve job satisfaction and increase retention.

While many employers consider offering health and dental coverage for employees, life insurance is a benefit that some overlook. Available in several varieties with each tailored to a different set of needs and goals, group life insurance can be an excellent avenue for adding value for your employees.

If you’re exploring group life insurance and have questions, Higginbotham is here to answer them.

 

The Higginbotham Difference: We Care

Our authentic and transparent approach to employee benefits is designed to put people at the center of everything we do.

Our health and welfare insurance specialists take the time to get to know your unique needs so we present options that make sense for your group.

And we don’t stop there.

Once we help implement your plan, we deliver year-round value with our Day Two Services® that empower you with resources to educate your employees, administer your plans and maintain compliance. We’re more than your employee benefits broker, we’re an extension of our HR team.

By taking care of your employees, you can rest easy knowing they’re doing the same for your organization.

Because when you lead with values, value leads.

To learn more about how our values-based approach creates value for your organization, click here.

Or visit our Insights page to learn more about employee benefit plans.

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When your employee benefits broker takes the time to listen.

What happens when you work with an insurance partner who starts with questions and ends with custom solutions? What do you get when you team with a company that values your business? You get value.

  • The best rates available.
  • Personalized, dedicated service.
  • Education and support for you and your team.
  • A veteran team with deep industry experience.
  • A partner to handle communications, compliance…even COBRA.
  • A flexible broker who helps you through growth and contraction.
  • A dedicated team who truly cares about your success.

Securing group life insurance doesn’t have to be a solo effort. When you have a national leader on your side, it isn’t.

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Each year Higginbotham takes our business to market to ensure that we are getting the best coverage for the best value.

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Controller, Consilium Staffing

What happens when group benefits are simplified?

Would you rather be on hold with an insurance broker, or running your business? Would you rather your employees struggle with paperwork and questions about their benefits, or focus on their work? These are easy answers, which is why we’ve made planning your group benefits easy.

When you have a streamlined process for finding the most competitive rates available, you get a lot.

With Higginbotham, you get:

Less paperwork, and fewer risks.

More efficient processes.

Simplified compliance.

Increased employee satisfaction and morale.

Work with a broker who cares.

Employee owned and customer inspired, we make caring for your business our business.

We’re your ally in finding the most efficient insurance plans, maintaining compliance, covering your employees and protecting your bottom line.

A great business can’t exist without great employees and the relationships they have with your customers. That’s why we help you take care of your team.

You’re responsible to your people. We’re on your side, every day, to help you honor that responsibility.

Because when you lead with values, value leads.

 

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Group Health Insurance Plans vs. Group Health Plans

You may assume that group health plans and group health insurance plans are the same, but they’re actually different.

Group Health Plans

There are multiple ways for employers to finance group health plans. Common financing options include self-funding (ASO), level-funding, captives, exchanges and fully insured.

These plans are defined as “employee welfare benefit plans established or maintained by an employer, employee organization or both, that provide medical care for plan participants and their dependents.” They’re usually covered by the Employee Retirement Income Security Act (ERISA) and must comply with its standards of conduct and fiduciary responsibilities.

Our professionals are well-versed in plan design and cost-control and can help you decide which option makes the most sense for your organization.

Most plans fall into one of the following categories:

  • PPO
  • HMO
  • HDHP
  • Reference-Based Pricing
  • EPO

How does group life insurance work?

Group life insurance functions much in the same way as an individual life policy, providing a death benefit to the beneficiary of a policy if the employee passes away.

To fund this death benefit, the employee and employer pay a monthly premium that is invested over time. In most cases, an employer offering life insurance as a group benefit shoulders most of the monthly premium cost.

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Types of Life Insurance

For most employers interested in offering group life insurance as an employee benefit, there are typically four options:

  1. Term Life
  2. Whole/Permanent Life
  3. Universal Life
  4. Variable Life

Term Life

Term life insurance is widely regarded as the simplest and most cost effective form of group life insurance available.

A term life policy works by first establishing a “term,” which is usually as little as one year and as long as 30 years.

After selecting a term length, the employee chooses between a “level term” or a “decreasing term.”

Decreasing terms slowly decrease the payment amount each year. Level terms pay the same death benefit throughout duration of the policy.

While decreasing term life policies tend to have lower premium costs than other forms of life insurance, the death benefit they provide may not fully cover the needs of a spouse or dependents.

Whole/Permanent Life

Unlike term life options, whole life insurance can cover employees throughout their lifetime.

While cost per $1,000 of death benefit on a whole life policy typically increases as the employee ages, the premium payment and total death benefit often stays the same year-over-year.

This is achieved by way of a higher premium payment during the employee’s early years and investing the difference in hopes of gaining returns. These returns are then leveraged to offset increases in coverage costs as the employee ages.

If the employee wants to terminate the policy before death, the insurance carrier is usually required to make the cash value of these overpayments available for withdrawal.

Universal Life

Also commonly known as “adjustable life,” universal life coverage is a special type of whole life policy designed to create more cash value flexibility for the employee.

Universal life policies accomplish this by way of a cash value account that earns money at the market rate of interest. Once enough value has accrued in the account, the employee can apply the financial gains to offset premium payments, effectively lowering the monthly cost.

Because the employee can draw from the policy’s cash value, a universal life plan can also serve as a mechanism for post-retirement income replacement.

Variable Life

Variable life is another specialized form of whole life insurance. Like universal life options, variable policies also establish a savings account intended to grow cash value through investment in stocks, bonds and money market mutual funds. While they employ the same basic strategy as universal life, variable life coverage tends to involve considerably more risk.

This is because market fluctuation can negatively affect cash and death benefit values. Though some variable life options cap potential losses by setting a minimum policy value as a trigger for divesting.

Do your employees really need life insurance?

For anyone with people who depend on them financially, life insurance is almost always a wise investment.

Even if they have no dependents and considerable savings, life insurance products can end up making things much easier in retirement.

Considering that an employee can withdraw from or borrow against the cash value of some permanent insurance options, the security created by a life policy is typically well worth its cost.

Beyond more apparent benefits, a life policy can also help fund the buyout of a deceased partner’s ownership share in a business. It can also help the insured leave a legacy impact on a favorite charitable cause.

Death is one of the only things in life that’s guaranteed. Who doesn’t want the peace of mind knowing their loved ones won’t be left with a bill for their funeral expenses or tax liability on their inheritance?

Both term and permanent life insurance options can be used to help:

  • Establish and Grow a Savings Account
  • Build an Inheritance for Heirs
  • Support Dependents
  • Pay Final Expenses

How much life insurance coverage do employees need?

Employees should consider several crucial factors before purchasing a life insurance policy.

Some may also need to consider the needs of a business partner, charity or another individual outside their immediate family.

While deciding on life insurance can be overwhelming, the insurance specialists at Higginbotham are here to help. We can educate your employees on their group plan so they get the same level of care and attention that you get as our client.

Some examples of things to think about when planning life insurance coverage are:

  • Estimated Final Expenses
  • Financial Need of Dependents
  • Outstanding Debt
  • Current Savings

How much does group life insurance cost?

Higginbotham is committed to getting you the group life coverage you want at a price that makes sense for your budget. So we start by getting to know more about your employees’ needs. With that knowledge, we offer coverage options and advise you on the best fit for your business and workforce needs.

Our goal is to go well beyond what you’d expect from an insurance broker, not only meeting your group life insurance needs and expectations, but exceeding them at every opportunity.

When designing a life insurance plan, we carefully consider factors such as your team’s:

Age

Location

Health History

Health Conditions

Amount of Coverage Needed

Ready to learn more about the group life insurance that makes the most sense for your business? We’re in your corner.

Give one of our life insurance specialists a call today to find out what Higginbotham can do for you.

Talk to an Employee Benefits Specialist

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