The new products include an employer-paid group term life plan and a long-term care benefit rider on whole life insurance policies.
Colonial Life’s new group term life insurance product allows employers to conveniently provide a popular benefit to employees. Term life insurance is an affordable option that can help employees and their families replace lost income in the event of a death and is guaranteed-issue, meaning no health questions for employees. The employer-paid option uses a composite rate structure, which means the same rate for all employees, regardless of age or tobacco use.
The group term life insurance coverage also can be offered on an employee-paid basis and provides options tailored for both large and small accounts. For small accounts, program administration is simple. For larger accounts, employers can customize additional options to fit the needs of their employees.
Life insurance ownership across the United States is at a 50-year low, with only 70 percent of U.S. households owning life insurance coverage, according to LIMRA (2014). And 58 million of those households report they don’t have enough (LIMRA, 2013).
“Life insurance is the one policy everyone needs,” says Steven Johnson, vice president of Product Development for Colonial Life. “We know employees are interested in purchasing life insurance benefits at work, yet only 25 percent of small businesses offer life insurance to their employees (LIMRA, 2014). Our group term life plan offers employers an easy, affordable way to help offset the financial risk for uninsured employees.”