How to Structure a Life Insurance Program for Employees

In a corporate environment where talent retention and employee well-being are key factors for business sustainability, benefits related to employees’ financial security are gaining increasing importance. Among these, life insurance stands out as a fundamental tool—not only to protect workers and their families but also to strengthen the company’s value proposition as an employer.

Designing an effective corporate life insurance program requires strategic planning, technical expertise, and a comprehensive view of risks. As a specialized insurance broker, we play a pivotal role in ensuring that the implemented solution delivers tangible benefits to both employees and the organization.

1. Workforce Diagnosis and Corporate Objectives

A life insurance program must begin with a deep understanding of the workforce composition:

• Number of employees and organizational structure.

• Age distribution, gender, and family profiles.

• Hierarchical levels and critical operational roles.

• Existing protection benefits (individual or group policies).

  
  

Broker’s role: Using risk analysis tools and market benchmarking, a strategic advisor helps identify protection gaps and align the program with corporate objectives, such as talent attraction, compliance with collective agreements, or executive compensation plans.

2. Defining Coverage Scope and Types

The program design should include different levels of protection:

• Basic group life insurance: Standard coverage for all employees.

• Supplementary or voluntary life insurance: Additional options for employees seeking expanded protection.

• Additional coverages: Total and permanent disability, double indemnity for accidental death, critical illness benefits, and more.

Broker’s role: Recommend coverage combinations that optimize the budget while ensuring a balance between cost, scope, and value for employees.

3. Determining the Sum Assured

The insured amount should be defined based on:

• Salary multipliers (e.g., 24 to 36 months of salary).

• Common practices within the industry.

• The company’s budget capacity.

Broker’s role: Advise on appropriate insured amounts for each organizational tier, ensuring fairness and competitiveness within the labor market.

4. Insurer Selection and Negotiation

Key factors for selecting an insurer:

• Financial strength and specialization in group policies.

• Experience handling complex claims and payment timelines.

• Flexibility regarding insurability conditions and exclusions.

• Additional services such as wellness programs or tax advisory on indemnities.

  
  

Broker’s role: Through a tender process or direct negotiation, secure preferential terms and customized coverage for the company.

5. Employee Communication and Awareness

A life insurance program is effective only if employees clearly understand its benefits:

• Internal communication campaigns and informational sessions.

• Educational materials explaining coverages and claims procedures.

• Digital tools for inquiries and requests.

Broker’s role: Design and implement the communication strategy, ensuring employees are aware of and value the protection provided.

6. Ongoing Management and Monitoring

Program administration must be dynamic and adapt to changes in workforce size or corporate strategy:

• Updating beneficiaries and insured members.

• Reviewing claims history and adjusting premiums.

• Annual renewals and competitiveness analysis.

Broker’s role: Act as a strategic partner in managing the plan, supporting HR in daily operations and data-driven decision-making.

Conclusion

A corporate life insurance program is more than just a benefit—it is a wealth protection strategy that provides peace of mind to employees and strengthens the company’s stability. To design and implement it effectively, it is essential to work with an insurance broker who acts as a risk advisor and strategic partner, capable of turning the investment into tangible value for the organization.

Sáas HC Solutions

At Sáas, we have a team of consultants specialized in designing employee insurance programs aligned with your company’s talent management and benefits strategy. Our approach combines detailed workforce analysis, technical design, and negotiation with leading insurers to deliver comprehensive solutions that enhance protection, well-being, and talent retention.

Let’s discuss how to structure a strategic life and health insurance program that drives your organization’s strength, engagement, and long-term sustainability.