4 ways to give workplace life insurance a higher profile

In many workplaces, the topic of life insurance comes up once a year at benefits enrollment time — if at all. The result is that many employees don’t know they have employer-provided coverage or don’t understand the coverage well. They also may underestimate how much coverage they should have.

According to LIMRA, more than 10% of workers say they’re unsure whether their companies offer various types of insurance and noninsurance benefits. This lack of understanding, along with common misperceptions about life insurance, can add up to low enrollment for a valuable financial wellness benefit. 

This can be a problem for companies that position their benefits to attract and retain talented employees. If employees are not even aware they have benefits such as life insurance, companies may experience a low return on their investment. 

What employees are thinking

Life insurance doesn’t have to be the workplace benefit nobody talks about. Thoughtful strategy and timing can go a long way toward helping employees understand its value. Meaningful content and frequent communication about benefits are associated with better understanding, according to LIMRA’s 2025 Insurance Barometer Study.

An effective strategy could start by dispelling some common misperceptions:

» Life insurance is too expensive. I can’t afford it. Group rates through an employer can be very cost-effective and are usually lower than those for individual plans. Also, group life insurance offers a guaranteed issue amount, which means medical history information is not required. This can make it easier to enroll in group life insurance than in individual plans.

» I don’t know why I need it. The answer can be as simple as this: Life insurance helps protect your loved ones financially when you’re no longer there to support them. It can help them maintain their current lifestyle, pay debts such as a mortgage and cover bills such as utilities and funeral costs. It can also help leave behind a financial legacy for beneficiaries. 

» Life insurance is something I’ll need when I’m older. It’s never too early to provide a safety net for your loved ones. Life insurance provides security from the unexpected, which is a risk at any stage in life. Younger adults may think they can put off buying life insurance; what they may not realize is that medical history is frequently required if they enroll for group life insurance outside their eligibility window. Coverage may be more challenging to get as they age and as health problems become more common. In addition, coverage is more affordable when you’re younger. 

» My workplace plan provides enough coverage. Many companies provide a basic life insurance policy at no cost to the employee. It typically provides a policy equal to one year’s salary. However, losing one income could be devastating to a family’s finances, considering that nearly half of married-couple families had both spouses employed in 2025. Fortunately, many employers offer additional coverage at affordable group rates, so employees can buy more coverage to meet their family’s needs. 

4 ways to raise the profile 

Employers who want to move the needle on life insurance awareness and enrollment have many tactics to kick into gear.     

1. Power up the content. Educational materials for employees must do more than point to the enrollment process; they also must clearly state the value of their workplace benefit and why choosing group life insurance is a smart choice for these reasons:   

» Affordability — Group rates are almost always lower than for individual plans.

» Accessibility — Employer-offered coverage provides some amount on a guaranteed issue basis, which means no medical questions for employees to answer for a benefit up to the guaranteed issue amount.

» Convenience — Payroll deductions allow premium payments to be seamlessly deducted from employees’ paychecks.

» Flexibility — Employees can easily change their coverage amounts to meet their evolving needs. This may happen after getting married, having children or buying a home. At the same time, they may also request a change in beneficiary to align with these life changes

2. Customize their coverage. Providing optional coverage for employees and their dependents is key to allowing employees to find the best fit for their family. A guaranteed issue amount is usually available for optional amounts for employees and their spouses and children.

Offer resources, such as online calculators to help employees figure out how much to buy. This can help them choose the right coverage amount based on their income, major expenses and assets. 

Also reach out to groups of employees who may appreciate more information about life insurance. For example, the Insurance Barometer Study found that fewer women say they have life insurance — 49% compared with 55% of men — and that more than a quarter of Generation Z and millennials cite a lack of knowledge about life insurance products as a reason they don’t own them.

3. Demystify premiums. Counter the misperception about the cost of life insurance by helping employees understand how little their premiums might be. Use premium grids and calculators to show per-paycheck amounts for varying amounts of coverage. That can help them decide what they can afford for the coverage they need. 

It may help to compare paying premiums to subscribing to a streaming service. As long as they keep paying the subscription fee, their service continues. Likewise, as long as they keep paying their premium, their coverage continues.

4. Turn up the frequency. Employees want to hear about their benefits more often than once a year. In fact, 73% of those surveyed told LIMRA they would prefer to receive benefit communications either a few times or more frequently throughout the year.  Gen Z workers, who have the least experience with benefits, are even more likely to want more frequent communications: 

» Post reminders in benefits newsletters, intranet sites and employee portals. 

» Highlight life events that may trigger a review of coverage. These include getting married or divorced, buying a home and having a child. 

» Offer periodic “benefits checkup” campaigns throughout the year.

The value of workplace life insurance isn’t hidden because it’s unimportant; it’s hidden because many employees don’t get enough information to understand how it can enhance their financial lives. 

Employers who spotlight the benefit throughout the year, simplify concepts and encourage employees to review their coverage can help turn awareness into action. This can give life insurance the higher profile it deserves and help ensure employers are able to attract and retain the talent they need to be successful.

Jennifer Gassaway is a senior product manager at The Standard. Contact her at jennifer.gassaway@innfeedback.com.