LIFE INSURANCE

Death benefits are becoming universal employee benefit in the United States. Almost all employers, regardless of size, provide death benefits for employees as an integral part of the employee benefits program.

• Group term life insurance
• Group paid-up life insurance
• Group permanent life insurance
• Group universal life insurance
• Group dependent life insurance
• Group accidental death and dismemberment (AD&D) insurance
• Group travel accident insurance
• Supplemental/optional life insurance

Advantages to the Employer

• Financial security is provided for the employee’s family with this coverage.
• The coverage can be a competitive benefit for some companies.

Advantages to the Employee

• Adds a layer of low cost protection to their personal savings
• Helps reduce the anxieties associated with a premature death
• If the plan does not favor (key) employees, the employer’s contributions are not reported as taxable income
• With contributions being payroll-deducted, the possibility of lapse in coverage is greatly reduced
• The conversion privilege enables the terminated employee to convert their group term life insurance to individual permanent policies without having to provide individual evidence of insurability, in most all cases.