What Do Employees Ask About Life Insurance? A Guide for HR Administrators

Helping employees understand their life insurance benefits is a key part of HR’s role. Most questions center around what coverage they have, whether it’s enough, and what they need to do to make sure their loved ones are protected. This guide focuses on employer-paid group term life and voluntary group term life insurance, offering practical tips for HR teams.

Understanding the two types of coverage

Employees often assume their employer-paid life insurance is sufficient. HR can help them see the value of voluntary coverage and why it’s worth considering.

• Employer-paid group term life typically covers 1x salary or a flat fixed amount such as $50,000
• Voluntary group term life lets employees buy additional coverage at group rates
• Recommended coverage of 7–10x annual income depending on family needs
• Voluntary plans often offer guaranteed issue amounts with no medical questions or exam

By explaining the difference and showing how voluntary coverage fills the gap, HR can guide employees toward smarter protection choices.

Why beneficiary designations matter

One of the most overlooked but critical steps in life insurance is naming a beneficiary. HR teams are responsible for collecting and maintaining these designations, and employees need to understand why they’re so important.

• A beneficiary is the person who receives the life insurance payout
• Without designation, benefit payouts may be delayed or paid to an estate
• Beneficiaries should be reviewed and updated after major life events
• HR should remind employees to complete and revisit their forms regularly

Framing this as protection for loved ones during a difficult time helps employees see it as more than just paperwork.

Common questions and how to answer them

HR teams frequently hear variations of the same questions. Here are two examples and how to respond effectively.

Q1: Why should I buy additional life insurance?

Employees may not realize their basic coverage is limited. Help them understand the value of supplementing it.

• Most employer-paid plans offer a flat amount like $50,000 or a times salary in coverage
• That may not be enough to cover mortgage, debts, or family expenses
• Voluntary coverage is affordable and easy to enroll in, and premiums are paid through payroll deduction

Q2: What is a beneficiary, and why do I need one?

This question opens the door to a vital conversation about planning.

• A beneficiary is the person you select to receive the life insurance benefit
• Completing a beneficiary designation ensures the benefit goes to the right person quickly
• Without one, the payout may be delayed or misdirected
• It’s easy to update and should be reviewed regularly
• HR can help employees check and revise their designation

Education and support

HR administrators play a vital role in helping employees understand and appreciate their life insurance benefits. Clear communication, proactive education, and support around voluntary coverage and beneficiary planning can make a meaningful difference.

• Educate during onboarding and annual enrollment
• Use relatable examples and simple language
• Emphasize convenience, affordability, and impact
• Provide tools and reminders to keep coverage current
• Utilize examples and stories to accentuate why benefits are important

By guiding employees through these decisions, HR helps ensure their families are protected and that the life insurance benefit truly delivers when it’s needed most.