Worksite Smarter.
Enhancing Financial Resilience: The role of GWL in benefits packages

Posted on: September 10, 2024

I was recently tapped to provide a commentary for an insurance industry publication about potential sources of funds when working Americans are faced with unexpected expenses. And it got me thinking … this is too important of a topic to not share with a larger audience, and especially with benefits professionals who can play an important role in enhancing financial security for today’s workforce.

As many of you know, creating compelling, competitive benefits packages can be key to attracting and retaining clients. According to MassMutual Worksite research, an overwhelming 8 in 10 working individuals would like to have more in their emergency fundⁱ, however, they face obstacles in achieving this goal. This presents a prime opportunity for benefits producers to introduce innovative solutions that go beyond standard offerings.

Group Whole Life (GWL) is one such benefit that is often underutilized in financial well-being strategies yet offers significant advantages. GWL isn’t just about a guaranteed death benefit—it’s a robust financial asset that enables certificate owners to accumulate cash value over timeⁱⁱ, growing tax-deferred. This feature allows GWL to serve not only as a financial “safety net” in the event of death but as a proactive financial resource during an employee’s lifetime.

The advantages of integrating Group Whole Life into your offerings are quite varied. First, it enhances the attractiveness of your benefits packages by providing a multifaceted financial solution. This is not just life insurance, it’s a financial well-being resource that can help in times of need, such as emergencies, offering additional value to employees.ⁱⁱ

Second, by leveraging access at the workplace, you can help your clients provide their employees with convenience to coverage. The workplace serves as an ideal platform for working Americans to access these benefits. Coverage can often be a more affordable option due to discounted group rates. The portability of GWL can be a critical selling point: it allows employees to retain their coverage for a lifetimeⁱⁱⁱ , thus ensuring ongoing protection and peace of mind.

For you, as a benefits producer, Group Whole Life (GWL) can represent an opportunity to stand out from the competition. In addition to its primary purpose of providing permanent life insurance, it allows you to offer an attractive product that addresses a direct need—helping to provide financial stability and emergency preparedness. By proposing GWL in your client engagements, you demonstrate foresight and a deep understanding of employee needs, which can significantly enhance client satisfaction and retention.

Moreover, Group Whole Life (GWL) has additional features that can be used to customize coverage to fit diverse employee groups that can further increase its appeal. GWL with living benefits is more than just a benefits option; it’s a strategic resource that can enrich benefits offerings and provide substantial value to your clients. As benefits producers, it’s crucial to continually explore how voluntary benefits like GWL can not only protect but also enhance the financial well-being of working Americans. In doing so, you position yourself as a forward-thinking leader in voluntary benefits, equipped to meet the evolving demands of the workplace and the workforce.