Mike’s Life Insurance Advice

Do you own a high risk business? Do you want to have the absolute best people available working for you? One way to assure it is by offering a nice salary along with an excellent benefits package.

Are you saying to yourself that since the economy is in the doldrums it’s not necessary to bulk up on the benefits? Maybe you’re looking out your door and you see people lining up, looking for a job.

Well, if nothing else is true, this one is: things change. At some point in time, maybe it will be next month or perhaps it will be next year, but at some point in the future the economy is going to turn around and things will start booming again. It’s the nature of the beast. And when the inevitable happens would you rather have the best employees working for you already, or do you want to have to compete for them?

Here’s what I mean. Let’s say that you’re in the construction industry and you need a bunch of carpenters to build homes. Here’s a benefits package you might want to consider:

You should definitely offer a basic term life insurance plan that also includes accidental death insurance, dismemberment insurance, and dependent life insurance. The specifics of the plan will depend on the number of employees that work for you as well as the different risks involved with the type of work they do.

By the way, most employers pay for term life insurance and require only a small contribution, if any, from their employees.

You’ll give them term life insurance because it’s relatively inexpensive and lasts for a finite amount of time. Most company term policies will be for between one and three years. You will then have to renew it at the end of the term if they’re still working for you and you want the policy to continue.

These policies can be as little as $25 per month because the policies are for a specific amount of time. This makes it is easier for the insurance carrier to calculate the risk involved in covering your employees.

And you won’t be short changing your employees because even a policy with a low premium can pay their beneficiaries death benefits that can amount to hundreds of thousands of dollars. And, should your employee die within the time frame that the policy is in effect, their beneficiary will receive the total value of the policy.

Beneficiaries have historically used the money to help pay off their family debt, take care of their mortgage, and send their children to college.

Hopefully all of your employees will live long and happy lives. So keep in mind that if the term policy expires before they do, unlike a whole life insurance policy, their term life insurance offers no cash value.

But that’s in the future. Right now, you can get the insurance you need to attract the talent you want, even if you’re in a high risk business.