We recently talked about disability insurance and how this can provide your employees with some peace of mind in the event that an injury or illness is to occur.
However, in more severe situations, employees want to know that their loved ones will be taken care of financially upon their death. This is where term life insurance can come into play.
Here are 7 ways that term life insurance can prove to be beneficial to your employees:
1. Offers the greatest death benefit at the lowest cost when initially issued.
For employees looking for a shorter term solution (less than 10 years) to provide their loved withs with financial security upon their death, term life insurance is a great option. However, while economical on the front-end of the policy, the premiums for a term life insurance policy increase with age.
2. Provides a relatively low cost to young people.
Generally, the younger and healthier employees are, the lower the cost will be to acquire term life insurance. This makes term life a great solution for employees with families.
3. Contains conversion features to allow policy holders to convert to whole life insurance.
While a whole life insurance policy may be too expensive for some employees to purchase on the front-end, a convertible term life insurance policy allows employees to benefit from higher death protection than they could otherwise afford and build cash-values later on.
4. Allows for a mix of term life insurance to best meet an employee's needs.
There are a number of different types of term life insurance policies that can be combined as riders with other types of permanent insurance to best suit an individual employee's needs.
5. Pays proceeds of the policy to the beneficiary without any delay.
Because a term life insurance policy is generally not part of the probate estate unless the estate is designated as the beneficiary, there is no delay in paying the proceeds to the beneficiary.
6. Provides no public record of the the death benefit or who the beneficiary is.
Many employees would want to keep their death benefits information or beneficiaries private, and a term life insurance policy accomplishes this goal.
7. Creates non-taxable death benefits proceeds.
Generally speaking, the proceeds that beneficiaries receive from a term life insurance policy are not subject to federal income tax.
While term life insurance can offer your employees a number of benefits, there are also a lot of moving parts that come into play to create a solution that works best for each individual's needs and goals. This is why you'll want to be sure to enlist the help of an experienced and qualified insurance advisor.
Please contact us at Summerlin-Roberts to learn more about how term life insurance can benefit your employees and which solutions are ideal for their needs.