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The Unexpected Ways Group Life Insurance Can Benefit Your Employees

by | Dec 11, 2022 | Blossom Insurance Blog | 0 comments

The term “group life insurance” refers to a kind of life insurance policy that is purchased by an employer or organization on behalf of its employees or members. 

How Group Life Insurance Provides Protection for Your Employees

Upon the death of the policyholder, the policy’s beneficiary can receive a sum of money to cover the funeral expenses of their loved ones. 

In the event that the policyholder passes away, the life insurance policy will provide financial protection for the policyholder’s family.

This is done by providing a death benefit to the beneficiaries designated by the policyholder in the event of his or her death.

After a policyholder passes away, the death benefit is a lump sum payment that is made to the beneficiaries of the policy upon the policyholder’s death. Usually, the amount of the death benefit is determined by the amount of the policyholder’s salary.

In addition, other factors such as the length of time the policyholder has been with the employer.

Death benefits can be used by beneficiaries to pay for expenses such as funeral costs, outstanding debt, and other financial obligations that may arise after the death of the beneficiary.

Moreover, it may also serve as a means of providing financial security for the beneficiaries by helping to replace the lost income that resulted from the death of the policyholder during his lifetime.

There are many additional benefits that may be included in group life insurance policies in addition to the death benefit.

These include accidental death and dismemberment coverage. This is a form of additional financial protection for the policyholder in the event of his or her accidental death or the loss of a body part or limb.

As a whole, group life insurance can be viewed as an investment that provides financial security and peace of mind for policyholders and their families. This is because it helps to protect them from the financial impact of the unexpected death of one of the policyholders.

How Employers Can Benefit their Employees

Group life insurance can greatly benefit employees in Kenyan scenario

In Kenya, employers can use group life insurance to benefit their employees by offering coverage as an employee benefit to them.

In order to attract and retain employees, employers can demonstrate their commitment to the well-being and financial security of their workforce through the provision of group life insurance policies.

It is known that group life insurance can provide financial protection to employees and their families in the event of the death of the employee.

This can help to cover expenses such as funeral costs and outstanding debts, as well as provide financial security by replacing the employee’s lost income in case of death. As the primary breadwinner for their families, this is especially relevant for employees who are the majority of their families’ income.

Furthermore, group life insurance covers more than just the financial protection it offers through its death benefit; it can also provide additional benefits to the employee, such as accidental death and dismemberment coverage, which provides additional financial protection in the event that the employee dies in an accident or loses a part of their body.

In order for employers to demonstrate their commitment to employee well-being and financial security, they should offer group life insurance as an employee benefit as a way to enhance the sense of belonging of their workforce and encourage them to participate in a positive work environment.

A Few Factors Employers Can Take into Account When Purchasing Group Life Insurance in Kenya

An employer in Kenya can take into account a number of factors when deciding whether to take out a group life insurance policy for his or her employees. There are a number of factors that play a role in this process, including:

When it comes to choosing a group life insurance policy, an employer should consider the size of their workforce as well as the needs of their employees. This will help them make a choice. In the case of a large workforce, for example, it is likely that a more comprehensive policy with a higher death benefit will be needed.

When you are choosing a policy for your group life insurance policy, you have to take into account the cost of premiums. This is one of the most significant factors to consider. There is no reason why employers should not compare the premiums of different policies. This is so that they can find a policy that suits their budget while still providing adequate coverage for their employees.

In order to choose the most suitable group life insurance policy for their workforce, employers should take into account the coverage options available with different policies on the market.

They should also select one that meets the needs of their workforce. You may find that some policies also provide accidental death and dismemberment benefits in addition to the death benefit, for example.

Exclusions and limitations of group life insurance policies: If an employer is considering the purchase of group life insurance for their employees, then they should carefully review the exclusions and limitations of the policy they are considering in order to ensure that the policy provides adequate coverage for the employees.

When choosing a group life insurance policy for their employees, employers should review the claims process for the policy they choose. They should make sure that the claims process is easy to navigate and straightforward for employees.

It is imperative for employers to consider the factors discussed above when choosing a group life insurance policy. This will provide adequate protection for their employees and their families, as well as meet the needs of their workforce.

Final Thoughts

Employers or organizations pay the premiums on these policies, and the policies apply to all eligible employees and members of the organization that pays the premiums. In addition to additional benefits such as accidental death and dismemberment coverage, group life insurance policies may also offer the possibility to purchase additional coverage for themselves or for their families.

Do you need to get started?

Talk to Blossom Insurance Agents and let us get you started on the best insurance coverage for your staff and employees.


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