The three primary forms of life insurance are universal, whole, and term. Employees’ life insurance plans, such as universal and whole life, are designed to last for the lifetime of the employee’s employment. However, term life insurance has a predetermined expiration date and is only in force for a predetermined time.
Term life insurance does not accrue cash value over time like universal or whole life insurance, making it difficult to borrow against or payout—rates for universal life insurance are the highest. However, you must carefully assess the benefits and drawbacks of each policy type before making these insurance policies available.
Employers may count on Employee Retention Benefits (ERB) to assist them in locating life insurance policies that work best for their workers. Look at how different life insurance policies might affect your employees and what they can do for your company.
Insurers Provide Both Universal and Whole Life Policies.
Both universal and whole life insurance are kinds of long-term insurance, so they are both considered permanent. Unlike whole life insurance, which only covers the policyholder’s final days, universal life insurance allows policyholders to choose how much they want to pay in premiums and what they get in death benefits. The insurance cannot be canceled if payments are made.
Universal life insurance is riskier than whole life since it’s cheaper. If the stock market collapses, universal life insurance may lose value. Whole life insurance is less affected by stock market fluctuations. These investors choose bonds and low-risk investments. When considering universal vs. whole life insurance, you should first assess your goals and needs.
Short-Term Life Insurance
A term life insurance policy provides coverage for a certain amount of time. The beneficiaries will get the death benefit if the insured person dies within this period. However, if the individual lives the duration of the policy, the death benefit will not be paid out. Term life insurance is a good option for those who don’t want to spend a lot of money on life insurance but yet want to protect their loved ones. If you don’t want to utilize your insurance policy as an investment vehicle, term life insurance is a smart choice because it doesn’t accumulate cash value.
The Advantages of Providing a Life Insurance Policy.
You need to consider your company’s goals and objectives when evaluating universal, whole, and term life insurance policies. Your company’s reputation as an employer can enhance, and top-notch workers will stay around with a life insurance benefit on their benefits package.
Competitive employment markets mean that employees have high expectations for their health insurance coverage quality. ERB, a leading provider of life insurance policies in Long Beach and the surrounding region, can assist you with your life insurance planning.
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