Offering group life insurance can help improve your company’s recruiting, retention and morale. It is one of the main benefits workers look for during a job search, and providing even a basic policy can make your company stand out from the crowd. As a business owner or HR manager, you might want to consider offering this important benefit.
Types of Life Insurance Policies
Life insurance is a type of insurance policy that will provide a lump sum of money to an employee’s designated beneficiary in the event they pass away in exchange for monthly, quarterly, or yearly premium payments. There are several types of insurance you may want to offer your employees.
Term Life Insurance
A term life insurance policy offers protection at a set price for a predetermined amount of time. The holder can choose the amount of coverage and length of time, and their payments will remain the same throughout the duration of their term.
There may be the possibility of renewal at the end of the term, but the premiums may be higher at that point. This type of policy does not have any type of investment or cash value, and it may have a time limit.
Whole Life Insurance
A whole life insurance policy is the most common type of permanent life insurance. Its premiums are fixed and will not rise, and individuals might be able to withdraw the funds or take out a loan against the policy.
The death benefit it offers is guaranteed as long as premium payments are made. This means loved ones will know how much they can expect when the holder passes away and their life insurance benefit is paid out to them.
Universal Life Insurance
Universal life insurance is a permanent life insurance policy that covers the insured person for the duration of their lifetime, provided that they pay their premiums and fulfill any other applicable requirements.
This combines a savings component, or “cash value”, with lifelong protection, and it has a death benefit that will be paid to a person’s beneficiaries when they pass away. It may be possible to adjust the premiums and death benefit over time.
Variable Life Insurance
Variable universal life insurance is a permanent life insurance policy that includes flexible premiums, a flexible death benefit, investment variety and cash value. It offers lifelong protection as long as premiums are paid, and the cash value of the policy can be used to cover payments if an emergency leaves the holder unable to make them.
It allows a person to invest in sub accounts with various investment options tied to the financial markets. It is a good choice for those who need maximum flexibility and do not mind the risks involved in the investment aspect of the policy.
The Importance Of Offering Life Insurance To Employees
More and more employers are offering life insurance to employees to help them stand out to job candidates, and it is particularly attractive to employees with families as it provides peace of mind that a person’s heirs will have a financial cushion upon their death.
Contact New City Insurance For More Information
If you would like to find out more about offering life insurance to your employees, get in touch with New City Insurance for experienced guidance on this important decision. Please give us a call at 888.210.2759 or request a consultation online.