“I came that they may have life, and have it abundantly…”
– John 10:10b
Church is a haven for billions of people every Sunday. People flock to the pews every week to find comfort and solace in God. In order for a Church to be strong there must be leaders in the Church that have a healthy spirit, mind and body. One of the keys to achieving these three principles is to have a good employee benefits “game plan”. A Church (no matter the size) needs to have three important insurance coverages for their employees: Medical Insurance , Term Life Insurance and Long-Term Disability Insurance.
Why does your Church employees need Health Insurance?
If you are alive and breathing, you need health insurance. If you don’t have health insurance and a medical emergency arises, you could easily accumulate several hundred thousand dollars in medical debt and medical bills are the number one cause of bankruptcy! On top of that, if your illness or injury is serious enough, you’ll be out of work, which means you will have huge debt to pay and potentially no money coming in to support the need.
The purpose of health insurance is to help your employees pay for care. It protects them and their family financially in the event of an unexpected serious illness or injury that could be very expensive. In addition, they are more likely to get routine and preventive care if they have good health insurance. Research shows that people with health insurance are more likely to have a regular doctor and to get care when they need it.
Why does your Church employee need Term Life Insurance?
Most of you know that Life Insurance is a need no matter where the economy goes. If your employee died with no life insurance, their family will most likely be facing a tough situation and have to make tough changes, all the while grieving the loss of a family member. According to Dave Ramsey, “You need to have eight to 10 times your income in good, 20-year-level term life insurance”. That way, if they pass on, their family can invest the money and, at a 10% return, replace their income. The cost for a term life policy is substantially cheaper than other life insurance products in the marketplace.
Life insurance will help to cover your employees mortage, final expenses, college funding for their kids, etc. The earlier your employees sign up for life insurance the better! The younger they are when they get it, the lower the cost and the easier to get approved. A group term life policy can be economical as well as a great support for your employee base. Even churches with small employee numbers (2-9 employees) can receive a group life insurance policy under most major life insurance carriers.
Why does your Church employee need Long-Term Disability Insurance?
Disability Insurance is one of the most forgot about insurance coverages in a employer sponsored program. Both Short & Long-Term Disability coverage are so important to church staff. If your employee dies, their life insurance will take care of their family. But if they are permanently disabled, they will be unable to produce an income and yet still need to be cared for. In that case, they need long-term disability insurance that will provide about 70% of their income for an extended time period, usually until death or age 65. About 49 Americans become disabled every minute and three in 10 in the workforce today will become disabled before they retire. With the average monthly benefit from Social Security disability being $1,004 a month, they can’t afford to not have this type of insurance.
Example: If your employee is 35 years old, earning $50,000 per year, and became disabled for the rest of their life, they will be missing out on around $1.5 million in income between age 35 to 65. This doesn’t even take into account raises, promotions, or benefits that they may have earned over this period. So, an average person could be putting a couple million dollars or more at risk by not having Long-Term Disability Insurance.
Hopefully this article is a help to you and your church staff. My goal in writing this is to create a benefits program that shows how much you care about your church employees. All the hard work and many hours spent in helping others these three key benefits can help show how much a church cares for it’s employee base.