what are the advantages and disadvantages to a company of providing its employees with life insurance programs

Posted on Jun 25, 2008 under Insurance Information |

11 Responses to “what are the advantages and disadvantages to a company of providing its employees with life insurance programs”

  1. The big question is weather or not the company will be able to afford this in the long and short term. Remembering that people die all the time and how and when could play the most important part in this question of yours. In a small business it wouldn't be practical because your trying to build yourself up and just one person dieing with a life insurance could bankrupt the small business, however in bigger/larger companies there is more capital and risk management funds available and to loose then only one employee in a 4 month bracket wouldn't effect the company really, however if 30 people die of a bomb blast the same could then cripple the larger company. It also factors how much that person was insured for. And then also factor in all those people who scam with life insurance. Yes there are advantages but with every advantage there will also be an disadvantage. One must deside if paying ex amount every month for the rest of your working caree is worth the risk of the company folding and you loosing it. Remember that there are also plenty of loop holes in life insurance! You might die according to your life insurance rules but who is to say they will pay out? They could turn around and say something didn't add up!

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