Term life insurance plans offered under GTLI are one of the most highly sought employee benefits from organizations. This is due to the dual benefit that it affords both the employers and the employees.Â
GTLI policy encompasses many employees covered under a single contract; hence, there is security for the family of an employee in case of his or her untimely death, besides forming a benefit for employers on various counts. Here’s a look at how such plans provide benefit to both parties.
Benefits to employers
Employee Retention and Attraction: GTLI as an employee benefit will make the company appealing to potential hires and strengthen retention capabilities. Many applicants, especially those who are married, consider the presence of comprehensive life insurance as most important. It is viewed as a signal that the employer is concerned about the individual’s long-term financial survival.
Tax Benefits: For the employers, GTLI premiums of a certain amount are often tax-deductible. This reduces the total taxable income. In some cases, part of the premium might even be tax-free. This makes life insurance for employees more financially viable and beneficial for the bottom line of the company.
Boost in Morale and Productivity: When employees realize that their families are covered, they tend to get less stressed and gain better job satisfaction, and in turn, this reduces stress at the workplace and promotes work productivity. A secure work-force is more likely to keep their focus and not abandon their jobs, meaning such a workforce is usually much more motivated and stable.
CSR: Providing GTLI also indicates that the corporate values of this company are based on corporate social responsibility. It shows willing care for the employees and their family members and, therefore, is a highly valuable part of the image of the organization. This may contribute positively to public relations and help consolidate a positive brand image.
Benefits to employees
Financial Security for Families: GTLI promises its employees that the family will be taken care of in case the employee dies prematurely. It can therefore assist the beneficiary clear funeral expenses, mortgage, and living cost, thus helping eliminate financial stress that may have arisen during a difficult period.
Convenience and Automatic Enrollment: GTLI is easier to get for an employee compared to individual policies. Most employers automatically enroll employees who are eligible, with payment of premiums, if required, being deducted from the salary as well. There is, therefore, no need to find life insurance in the open market or to add another account to pay the premium of the policy.
Option to Increase Coverage: Many GTLI plans offer optional coverage increases, so employees can buy supplemental coverage if they want. This flexibility allows employees to customize their coverage to better meet their needs, often at competitive group rates, which are usually lower than those of individual plans.
No Medical Exams: While most other individual life insurance policies require many health checks, the majority of GTLI plans do not. This could be a big attraction to employees who have struggled to obtain life insurance coverage because of age or other potential health factors.
Such GTLI plans will come as a benefit both for the companies and to all their employees. The company side finds it a little more cost-effective and serves to help build an healthier employee culture that comes forth to aid in recruiting people and retaining them, to enjoy tax benefit on many occasions. GTLI is more likely to add advantage over others by providing the setting of a carefree working atmosphere around it when being able to prove insurance coverage across all the employees whom they hire from the various markets, thus providing increased added benefits to these employees and enrich an enhanced, positive corporate culture with care for its workforces themselves.