Less than half of employers offer life insurance as a benefit

Apr 4, 2018

  1. Insurance Forums Staff
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  2. S Burgess
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    S Burgess New Member

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    Of course employers have stopped offering life insurance. They've realized that the insurers, through Erisa laws, have shifted their liability to the sponsoring employers. Why would any employer want that responsibility? Agents need to be the ones to change this trend by refusing to even offer employer-sponsored life insurance. When premiums stop coming into insurers they'll adjust their product offerings and accept the liability an insurer should be accepting as a regular business practice. Here's a great read about how employers and employees are being victimized by employer sponsored life insurance plans: https://cflid.com/employee-life-insurance/.
    Nice article, thank you Insurance-Forums!
     
  3. RGBC
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    RGBC New Member

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    I never realized the evil of employer sponsored health plans. But I am smart of enough to know that the lump sum payoff can't be that good.

    I'm curious if it's requirement to have it . I think my employer offers it for free.

    Also I'm curious if certain companies offer good plans. Most likely less loopholes and variable options.
     
    RGBC, Apr 12, 2018
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  4. leevena
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    leevena Guru

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    Could you please expand on the issue of carriers using ERISA to shift their responsibilities to sponsoring employer? What responsibilities? What part of ERISA? Thanks
     
    leevena, Apr 12, 2018
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  5. S Burgess
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    S Burgess New Member

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    Outside of erisa, insurance companies have to give timely notification to a policy owner of a past due premium, lapse, and reinstatement. They also have to offer third-party notifications. Under erisa, the employer gets these responsibilities and if they don't properly notify the owner of losing coverage, or if they give wrong information, they can be liable for the death benefit. It's all detailed in the link I added to my first comment.
     
  6. gravi8729
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    Some of the employer offer health insurance benefits to their employees. Health insurance should be included in employees's salary.
     
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