Why Do Companies Offer Life Insurance? 
There is a chance that this question is asking `` Why do employers offer life insurance to employees '' . If that is the intent of the question , the response is to attract and retain qualified employees . Companies that offer life insurance as an employee retention tool provide group plans . In group plans the employer owns the contract , and pays the premium . All employees are automatically covered . That means people with poor health or preexisting conditions can get coverage . 