While employers usually consider health insurance, 401(k) retirement plans, and paid time off to be the core benefits, adding group term life insurance significantly enhances the employer experience.

But what exactly is group term life insurance, and how can it benefit your team and business?

We’re here to break down all of the details. Let’s jump in. 

Group Term Life Insurance Defined

Group term life insurance is simply a type of group life insurance provided by employers to their employees. Life insurance policies in general offer a financial safeguard to the families of the policy holder in the event of a death. When an untimely death occurs, life insurance policies will pay out the specified beneficiary with a lump-sum benefit. These policies cover a variety of expenses such as:

• Funeral expenses.
• Medical bills.
• Income replacement (debt, bills, mortgage payments and college tuition).
• Offers an inheritance.

“Term” life insurance is simply a specific type of life coverage, and just means that the policy lasts for a set period of years. When offering term life insurance to a group of employees, the policies usually remain active as long as the employee is still employed with the company. Offering life insurance in addition to some of the more typical benefits generally costs little to nothing for employees, adding on to its attractiveness. 

How Exactly Does it Work? 

When businesses provide group term life insurance, the coverage level is usually based on a multiple of the employee’s yearly pay. While this amount can vary greatly, a common practice is to multiply an employee’s salary by two.  For example, an employee earning $50,000 per year could receive $100,000 in life insurance coverage. Some employers may offer additional life insurance options for an extra cost if employees wish to obtain a more extensive coverage plan.

If an employee with life insurance passes away, after notifying the insurance provider and providing a copy of the death certificate, the beneficiaries must complete a claims form. After the insurance company reviews the death certificate and claims form, the beneficiaries will then receive their lump-sum payment. In most cases, this payment is tax free. 

The Benefits of Adding Group Term Life Insurance 

Group term life insurance adds tremendous value to employees, and also provides some advantages to you as an employer. Here are some of the core benefits:

Financial Security That’s Affordable

Employees gain peace of mind when they know that their families are secure in the case of an untimely death. Instead of having to scramble to finance expensive costs that often follow the passing of a loved one, beneficiaries will be assisted so they can focus on the grieving process. Additionally, at little to cost for employees, they likely won’t have to worry about another monthly expense. 

Competitive Edge When Hiring

Pairing group term life insurance with benefits like health coverage and retirement plans helps your company to stand out during the hiring process. While competitive pay is usually the number one priority of individuals searching for employment, offering benefits that extend into the future is a great way to distinguish yourself in a competitive market. 

Tax Advantage

In most cases employers are able to deduct the cost of the group life insurance plan as a business expense. Additionally, if a death occurs, the beneficiary payout is also usually tax-free. 

Easy to Set Up

These policies are usually very easy to set up and don’t require medical exams. You simply select your plan, encourage employees to sign up through an administrative portal, and that’s it!

Group Term Life VS. Group Permanent Life

As discussed, group term life insurance policies offer temporary coverage for the tenure of an employee’s stay at a company. On the other hand, group permanent life insurance offers employees lifelong coverage, and builds cash value over time.

While a permanent life insurance policy may be suitable for individuals looking for long-term financial planning, these policies generally cost much more for both employers and employees. 

In contrast, group term life plans don’t accumulate more money over time. The upside is that they come at a much more affordable rate, standing as an ideal option for employers wanting to provide basic financial coverage to their team, without breaking the bank. 

Secure Your Team’s Future with GHQ!

Offering group term life insurance is a simple yet effective way to show your employees how much you care for them and their loved ones. Not only does this affordable benefit offer employees peace of mind, giving them an essential tool to plan for their future, it also gives your business a competitive edge when it comes to finding new talent. 

If you’re ready to take the next steps, Group-Health-Quotes (GHQ) is here to help! We offer plan comparison tools, free quotes, and expert advice from licensed agents.

To get started and strengthen your workforce today, contact Group-Health-Quote.com by filling out a form on the right hand side, or giving us a call at (888)-571-0291. 

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As many industries continue to advance, jobs are becoming faster-paced and more demanding. To look out for the well-being of employees, many organizations are beginning to recognize the importance of employee well-being. In turn they notice how much it plays a role in overall happiness, productivity and company success. One result of this is  that many companies are implementing wellness programs to promote healthy company culture and support for their workers. If you are an employer who does not offer an employee wellness program, you may want to reconsider. To help you make that decision, we will be exploring what exactly an employee wellness program is. We will also delve into the numerous types of programs that can help employees increase their well-being and how they can help the company overall. 

What is an Employee Wellness Program?

Employee wellness programs are defined as initiatives that enhance the wellbeing of a company’s employees.  These programs create a positive company culture by offering various activities, resources and incentives, encouraging healthy behaviors. The main components of employee wellness programs are elements like nutrition courses, stress management strategies, physical fitness initiatives, mental health support, preventative screenings, and more. Like supplemental insurance benefits, wellness programs can be customized. This lets you specialize your program to fit the needs and goals of your company employees.  

What Do Most Employee Wellness Programs Offer? 

As briefly mentioned, wellness programs can be tailored to the specific needs and wants of employees. With that said, there are a variety of common benefits that the majority of wellness programs will include. 

1.Ways of Promoting Physical Health

The cornerstone of most wellness programs are offerings that encourage employees to be healthy when it comes to their body. Some common physical benefits include fitness challenges and activities, preventative screenings and health assessments. Fitness challenges and activities could include things like discounted gym memberships, company fitness competitions, and group exercise classes. By encouraging regular physical activity, employees will improve areas of their health like their cardiovascular system. Preventative screenings and health assessments will include services like blood pressure checks, cholesterol testing, cancer screenings and more. By detecting health issues early, employees will have a far better chance of improving the ultimate outcome.

2. Promotion of Good Nutrition 

Wellness programs oftentimes will offer resources or workshops to help reinforce positive and healthy eating habits. By raising company awareness about diet, portion control and nutritional information, employees can reduce unnecessary trips to the doctor. 

Another way to promote proper nutrition is by providing healthier food options in vending machines or cafeterias. By having better food choices on hand, employees will be much more likely to make nutritious choices. 

3. Smoking Cessation Programs 

Some other wellness programs will include programs to help people quit smoking or using nicotine products. These programs provide employees with support groups, quitting incentives, and other resources to aid them in their addiction battle. By offering these services, you can promote a smoke-free environment while also helping employees reduce nicotine-related health risks.

4. Mental Health Support 

Most employee wellness initiatives offer some type or types of mental health support. Since many insurance policies lack mental health coverage, wellness programs can provide similar services for those in need. Common programs include stress management programs, counseling and Employee Assistance Programs (EAPs). Stress management programs can include mindfulness exercises, yoga, stress management techniques and workshops. All of these help employees achieve a better balance between work and personal life. On the other hand, counseling and EAPs  give employees access to support from mental health professionals. That way they are encouraged to work through their issues. All of these resources are great ways for employers to help their employees cope with the stressors of life.  

5. Financial Education

Wellness programs can also offer educational resources to help employees better manage their personal finances. This can come in the form of workshops or professionals, offering financial guidance and planning tips.

How Do These Programs Impact Companies and Insurance Plans? 

 There are various ways that these programs can positively impact your business and its insurance policy. How can it do that you might ask? Well, here are some of the top ways:

1.Less Absences, More Loyal Employees

When overall employee health is on the rise, the company can benefit, and so you can you individually. For one, wellness programs tend to reduce the number of employee missed days due to sickness or other injury. When employees are in good health, they will  be more engaged in their work and will miss less days. This ultimately contributes to the company’s overall production.  Additionally, wellness programs can increase employee loyalty, making them less likely to attempt to find another job. When employees feel their best physically and mentally, their morale will generally increase too. 

2.Better Recruitment and Employee Retention

Wellness programs can also serve employers as an effective way to attract and recruit top-tier talent. By offering a program like this, you can stand out from the competition, making prospective employees more likely to choose your company since you prioritize their health and offer a wide-range of services. When publishing job listings, try to include all of the employee wellness program benefits. That way candidates can have a better idea of what the company culture looks like. 

In addition to being a tool for recruitment, a solid wellness program will also contribute to a higher employee retention rate. You’ll be able to show your employees that you are committed to not only their professional development, but also to their physical fitness and mental well-being. When an employee feels supported and valued by their employer, they will be much more likely to stick with the company for years to come, rather than looking elsewhere for another job. 

3.Reduced Health Plan Costs

Another great employer benefit of providing a wellness program is the decrease in healthcare costs which often occurs. When you promote health choices, activities, and preventative care, employees will likely face far less issues, or when facing the issue, they will be proactive about it. If you encourage healthy behaviors and early detection measures to your employees, the development of many diseases and physical issues will be prevented. In turn, essential healthcare services will be used less, and policy expenses will go down. 

The promotion of health and well-being will also help you when it comes time to negotiate your group health plan rate with your insurance provider.  When insurance companies look at your company as a whole, taking into account every employee, they will look at things such as conditions, diseases, utilization of health services, overall health of employees and more to determine the company’s group rate. When insurers see signs that indicate a healthy workforce, it can often result in lowered rates and special discounts. With that said, being proactive when it comes to your employees will ultimately pay off monetarily. 

Wrapping Up 

An employee wellness program has the ability to use various health initiatives to encourage the overall well-being of your employees. While these programs will increase the satisfaction of employees, they can also take the company’s success level to new heights by increasing production, retention and loyalty.

By offering programs such as nutritional education courses, mental health support, physical fitness initiatives, and nicotine cessation aid, employees will reap the benefits of a sound mind and body. With group classes and competition, employees that would normally be less likely to participate will feel encouraged to join in, and a greater sense of community will be reached. While wellness programs usually impact employees in a big way, the advantages go far beyond just health improvements. Employers and companies as a whole will gain benefits such as reduced costs when it comes to their group health plan, less employee absences since workers overall health will be improved, and more effective recruitment with new, top-tier job candidates.

Employees that feel supported by their company will generally have a boost in morale, helping them to be more effective in their roles. As an employer who wishes to stand out in the competitive job market, it is on you to do your research and invest your money into a wellness program. While it may seem like an unneeded cost right now, the impact that it will have on the company culture and employee state-of-mind will pay for itself in years to come.

In conclusion, in today’s world, how our employees feel internally and externally greatly affects how successful our businesses are. If you prioritize their health and create a work environment that promotes positive habits, your company will thrive more than ever. If you are an employer who is in need of a top-notch group health plan for your business, you’ve come to the right place. At Group-Health-Quotes.com we have certified insurance agents who are available around the clock to help you explore your options and compare competitive quotes side-by-side. If you want to get a free quote with no hassle, fill out a form or give us a call at 888-571-0291.

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When searching for a group health insurance plan for your business, there are many factors to consider. Benefits and network size are vitally important, but for many, the associated cost is the biggest consideration. If you are a small business with limited resources, you probably want all the help that you can get when it comes to affordability. Before you get too frustrated, just know that there is in fact light at the end of the tunnel. In this case, the light is

This tax credit was originally created to help small businesses better handle the often-high costs associated with employee healthcare. If your business can qualify, it can help you ensure quality health benefits to your workforce without breaking the bank. As a business owner, it’s your job to make sure your finances are in order. So, it will benefit you greatly to learn more about this tax credit and what it can do for you!

Origins of the Small Business Health Care Tax Credit 

Initially signed into law in 2010, the Small Business Health Care Tax Credit was created as part of the Affordable Care Act (ACA). As a whole, the mission of the ACA is to make healthcare coverage affordable and accessible for all Americans. When looking at the oversights of the healthcare industry, founders recognized the hardships that many small businesses faced in providing their employees with a proper benefits package. Keeping this in mind the ACA made provisions to the act to include The Small Business Health Care Tax Credit. In general, the tax credit aims to encourage the number of small businesses that are able to offer health insurance coverage for their workforce. In turn the expectation was for employee health and well-being to increase. And for associated costs for the business owners to decrease.

Requirements of Qualification 

In order for your company to reap the benefits of the Small Business Health Care Tax Credit, there are certain characteristics and criteria that the business must meet. Here are the main requirements:

• Number of Employees: Your business must have less than 25 full-time equivalent employees. This is calculated by looking at the total number of hours worked by part-time employees. Then making them equivalent to a full-time employee. For example, two employees that both work 20 hours per week, equal one full time employee. 
• Average Yearly Salary: The average salary of your employees must be around or below the current threshold of $56,000 per year. This threshold number can change from year to year, so be sure to check up on the most recent requirements. 
• Owner Contribution: As the employer, you must contribute at least 50% of your full-time employees premium costs. Again, this percentage can change from year to year. 
• SHOP Coverage: Lastly, you must offer health coverage to employees through the Small Business Health Options Program (SHOP) Marketplace. Keep in mind that you will not need to offer SHOP coverage to the dependents of full-time employees or employees who work less than 30 hours per week. 

Benefits of the Small Business Health Care Tax Credit

So, if you’re still reading, that probably means that your business is able to qualify for the tax credit. Now, you may be saying to yourself — saving money sounds great and all, but what are all the upsides of claiming the credit? We’re here to help:

Potential Savings

Probably the most sought-after benefit of the Small Business Health Care Tax Credit is cost savings. If qualified, you will be able to use this tax credit to cover a portion of your employee health insurance premiums. By reducing your overall cost, you’ll be able to use the money you saved for other areas in your organization. In general, the smaller your company is, the bigger credit you will receive. With that said, the maximum credit is 50% of employee health insurance premiums for small businesses owners. And 35% of employee health insurance premiums for small tax-exempt employers. Keep in mind that you can only qualify for the Small Business Health Care Tax Credit for two consecutive years. 

Employee Retention and Attraction

When it comes to your current and future employees, this tax credit can make a huge difference. When you offer employees a solid benefits package, they will likely be more engaged, productive and happy at work. Making them less likely to seek out other job opportunities. Additionally, when vetting the market for new, top talent, an employee insurance package can be enticing. It will help make your business a top candidate. 

Tax Benefits and Business Growth

By qualifying for the tax credit, the amount of taxes that you owe will be lowered. With some relief provided, you can reinvest a portion of the money you saved back into your business. You will be enabled to help your company grow faster, since the financial burden of high taxes will be somewhat relieved. This could allow you to invest in new projects or expand your business where you see fit. 

Healthier Employees

Studies show that when employees have access to healthcare services such as preventative care and prescription medications, they will be healthier overall and therefore more productive while working. You may notice that when your employees’ health is taken care of the number of sick and absent days will be reduced.

Reputational Impact

If you are able to provide health insurance coverage to your employees with the help of the tax credit, your company’s reputation will increase. Not only employees, but also competitors and prospects will notice your commitment to employee wellbeing.

Claiming the Tax Credit

If you are still with us, that means you’re likely highly interested in claiming the Small Business Health Care Tax Credit. To do so, there is a certain procedure that you must follow:

• Check Eligibility: The first step is to determine whether or not you actually qualify for the tax credit. Take time to go through the aforementioned qualifications and requirements. If you are feeling uncertain in any way, it will benefit you to speak with an expert such as an experienced tax professional. Additionally, the IRS serves as a great resource offering an abundance of information about eligibility. 
• Calculate Your Credit Amount: Next, you’ll need to figure out how much of a tax credit your business qualifies for. The IRS has a worksheet that is used to help calculate this number. When filling out this sheet, you will need to have employee information on hand such as the number of hours they work, wages earned, and premiums paid. At the end of this process you should have a good idea of how much credit you are eligible for. 
• Fill out Form 8941: The next step is to fill out form 8941 also known as the Credit for Small Employer Health Insurance Premiums. This form is how you officially claim the tax credit. After filling it out, you must attach this form to your business tax return before sending it in.
• Claim the Credit: Now with form 8941 completed, you are all ready to actually claim your tax credit. Created to help directly reduce the taxes that you pay, the Small Business Health Care Tax Credit can be claimed on your personal (Form 1040) or your business (Form 1120) tax return depending on the structure of your company. 

Keep in Mind…

Taking advantage of the Small Business Health Care Tax Credit can help to relieve small businesses, but it’s vitally important that you remain informed on all of the moving parts. On a yearly basis, there are changes made to the guidelines of the credit, including changes to eligibility, tax regulations, and other employee healthcare rules. In addition to our guide, it’s important to do your own research, looking at government resources, and if necessary talk to a tax specialist or accountant. 

Wrapping Up

The Small Business Health Care Tax Credit helps business owners save money on the premiums that they pay for a group health insurance plan. Additionally, these savings will enable you to provide top notch health benefits to your employees. During this process, it is important to first understand what it means to qualify. Pay attention to company details such as the number of employees, the average yearly wages, the amount of premium cost that you contribute and the health coverage that you offer to full time employees.

Once you’ve determined your qualification status, it’s imperative that you follow the discussed procedures to successfully claim your credit. By taking advantage of this tax credit, your employees will be happier knowing that you care about their quality of life, and you’ll have more money left over to reinvest in your company’s future. It’s a win-win situation. So what are you waiting for? Save money and reduce your stress today!

If you are a business owner who is searching for a quality health insurance plan for your employees for a fair price, GHQ is the place for you! We have licensed insurance experts who work around the clock to ensure that your insurance shopping experience is simple, easy and worth your time. Our quote comparison tool lets you look at the top group plans in your area side-by-side ensuring that you get matched with a package that fits your needs. To get a free quote today, simply fill out a form or give us a call at 888-571-0291.

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