Is Group Life Insurance Enough? Understanding the Coverage Gaps 

Introduction:

With diverse businesses setting up their footsteps in the UAE, the country is becoming an epitome of high economic growth. In this fast-paced, competitive business environment, taking care of employee satisfaction becomes essential. Among various benefit packages to satisfy and retain employees, obtaining group life insurance for them emerges as a vital factor.

Nonetheless, many times, employers are not fully aware of how group life insurance works and the benefits it offers. As a result, a common question arises – Is group life insurance enough for employees’ life security? Due to such dilemmas, employers often start planning to add more benefits and insurance coverages to their employee benefit packages.

This blog will dig deep into the details of group life insurance’s coverage limitations, and how employers can overcome it.

How Employers Can Overcome the Coverage Limitations of Group Life Insurance:

Employees often get sceptical about obtaining group life insurance due to its coverage limitations, which seem to cause hassles for employees. However, employers can implement strategies to overcome these challenges, ensuring enough employee retention and satisfaction by providing group life insurance. Let’s explore the ideas you, as an employer, can implement in this matter.

Provide a no-cost facility:

Many times, individual life insurance plans include a sum of employees’ contribution, which is indeed a financial burden for them. In case of group insurance plans, if employers include group insurance plans for free in their employee benefits package, it becomes an attractive perk for employees.

Ensure easy claim processing:

When employees or their dependent family members find it easy to claim the policy benefits, it significantly enhances their satisfaction. In fact, lower coverage with a hassle-free claiming process overpowers high coverage with a complex claiming procedure.

Better coverage limit:

Investing a little more funds in employee group insurance plans compared to your competitor businesses can help you in the long term. Employers should consider obtaining an insurance plan that gives better coverage at a slightly higher premium cost. In contrast, the coverage should be at least twice the employee’s annual salary.

Negotiate customisation:

Many times, group life insurance also has some customisation options that employers can opt for after knowing their employees’ individual needs in detail. For example, some group life insurance policies come with additional benefits, which employers or employees can add to the existing plans.

On the other hand, some benefits like inclusion of pre-existing illnesses, maternity procedures benefits, etc. can be excluded, if not needed. However, for such cases, employers must go to trusted insurance providers like CoverB and discuss the specific requirements in advance.

When Group Life Insurance is Enough and When It isn’t: Exploring Scenarios

Group life insurance policies protect a group of people. Thus, when an unwanted mishap occurs with employees, their families receive financial help to handle the expenses.

This blog has discussed the limitations of group insurance packages and how employers can overcome them. Now, let’s answer the question—Is group life insurance enough?

To answer this question, we need to imagine certain scenarios.

• If an employee has no crucial financial responsibilities like large debts, or financially dependent family members, etc. and enough savings for retirement, group life insurance is enough to secure their life.

On the other hand,

• If an employee is the sole breadwinner of the family or has a crucial financial debt to clear, including additional financial coverage in the group insurance plan can be beneficial.

So, depending on every employee’s financial status, family background and medical history, employers can consider providing or suggesting additional benefit coverage along with the group life insurance packages. Also, trusted insurance providers like CoverB offer various types of group insurance policies, which can be beneficial for employees in unique scenarios. Obtaining those plans by employers offsets the group life insurance limitations well.

Final Words

In many cases, when obtaining individual plans is not possible, group life insurance is a suitable option for employees. For example, one employee may not be eligible to obtain an individual life insurance plan due to some health issues, as the underwriting process can be complex and difficult.

Anyway, a group life insurance plan without any additional coverage may not be enough for some employees in an organisation. In such a case, employers can consider adding extra coverage to the group life insurance plan, specifically for those employees.

Overall, through such an insurance plan, employers must offer their workers easy and no-cost access to receive a certain degree of protection for their employees and their families.

Leading insurance service providers like CoverB can guide employers better in this matter. So, it is recommended to discuss well with such an expert and secure workers’ lives with comprehensive group life insurance plans.

Connect with experts at CoverB today for tailored insurance service for all your needs!