Offering life insurance as an employee benefit is a smart strategy to protect your workforce and attract great talent. Here are six essential terms to understand this type of insurance.
A savings component of certain types of life insurance (such as whole life insurance). When you purchase a cash value insurance policy, a part of your premiums pays for insurance, while the remaining portion builds cash value. Depending on the type of insurance and the terms of your policy, you may be able to access the cash value for a variety of purposes, including making withdrawals or taking out a loan.
This is the amount you pay (usually monthly) for life insurance coverage. Your premiums will vary depending on many factors such as the type of insurance and the additional coverages you may choose to add to your basic policy.
Group Life Insurance
This is a type of life insurance where a single policy covers several people. In most cases, the owner of a Group Life Insurance Policy is an employer and the policy covers their employees. Group life insurance is usually offered as part of a larger benefits package.
Riders are provisions that modify the terms of a life insurance policy. Think of them as add-ons that extend the terms of a policy, allowing you to offer more comprehensive (or customized) coverage to your employees.
Term Life Insurance
As the name implies, this type of life insurance offers coverage for a limited time period. For this reason, it tends to cost less than whole life insurance (see below) and is the most common type of insurance offered as group life insurance.
Whole Life Insurance
Unlike term life insurance, whole life insurance offers lifetime protection. In addition to typical insurance coverage, a whole life insurance policy may also include a savings component called cash value. Whole life insurance offers more options than term insurance, but it also tends to cost more.
Lucero Benefits: Employee Benefits In Southern California
Are you looking for exceptional benefits for your employees? Lucero Benefits is here to help. From Medicare plans to dental plans and everything in between, we help you attract and retain the talent your company needs to stand out.
We are located in Moreno Valley, California. Contact us today by email (firstname.lastname@example.org), telephone (951-807-3332), or fill out the contact form on our website to learn more about our services.