A survey conducted by MetLife, the insurance and financial services provider, has found that only 15% of employers had employee participation rates of over 50% in their supplemental life insurance programs.
Following its research, MetLife concluded that many working Americans don’t have sufficient life insurance coverage to protect their families. Additionally, numerous employees appear to fail to take full advantage of life insurance benefits offered by their employer.
By taking steps now to implement best practices regarding group life insurance benefits, employers can dramatically improve employee participation rates during their next enrollment period, according to the group.
MetLife has thus introduced Best Practices For Life, a new online employer tool, that helps employers understand and implement best practices for group life benefits plan design, administration, enrollment and employee communications.
Because the workplace is the primary channel for obtaining life insurance coverage, employers play a vital role in narrowing the underinsured gap, Tony Trani, vice president, Life Products Management, MetLife told the press. MetLife has developed resources and tools – such as Best Practices for Life – that make it easy for employers to evaluate their group life plan’s performance and improve upon current efforts for maximum results during this upcoming benefits enrollment period.
Through use of the new tool, Trani suggests that plan sponsors and benefit managers may be able to encourage employee participation in their group supplemental life insurance benefit by offering a supplemental group life plan with features and services employees can use immediately, such as will preparation or travel assistance services.
Employers have also been advised to provide employees with the capability to enroll online as well as by paper. Having a separate off-cycle re-enrollment period for life insurance benefits can boost participation rates by as much as 15% because employees can focus on this important benefit separately from their medical or dental coverage, according to Trani.
The Best Practices for Life tool is the newest addition to MetLife’s stable of resources developed to help employers maximize the value of their group life programs.