Paid parental leave insurance is a new financial product, but it could be a game-changing employee benefit and an untapped opportunity for brokers, agents, and advisors.
How does it work?
Employers with 25 to 5,000 employees have their company complete a census that will be used to generate a quote for paid parental leave insurance coverage. This census will include things like the ages and genders of employees.
The employer will also have to select policy details. For example, do they want to replace 60% or 100% of an employee's weekly salary when they take parental leave? Do they want the benefit to last for six weeks or 16 weeks?
If they like what they see from the quote, they can move ahead and purchase paid parental leave insurance coverage. All employees are going to be covered under this policy, no matter if they smoke, have negative health history, or anticipate having children soon. The employer will pay their monthly premium just like any type of insurance coverage and there's no cost to the employees.
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