Why Is Life Insurance Important For Employees? 
If the employee is a `` key person '' in the business , it can be very costly for a business to lose him/her . The time spent in finding and training a new employee could put the business under . So providing life insurance that pays the business in the event that a key employee passes , can be extremely important . Some businesses provide group life insurance for all their employees . Rather than the death benefit going to the business , it is paid to employee 's family in the event of his/her death . This is a benefit that might draw good employees to apply or stay at a certain business , which is an important part of running a profitable business . It also can be very meaningful to the employee 's family if death occurs . 