Life insurance serves as an essential financial safety net for your loved ones in the event of your death. Life insurance comprises three main types: universal, whole, and term. Universal and whole life insurance policies are permanent policies that remain in effect for the duration of an employees' life. On the flip side, term life insurance only remains in effect for a set period and has a selected end date. Universal and whole life policies also build up cash value over time that you can borrow against or cash out, while term life policies do not. Universal life insurance generally has the highest premiums. Still, each type of policy has its advantages and disadvantages that you must weigh carefully before offering these insurance plans. At Employee Retention Benefits (ERB), we provide a wide range of life insurance plans and are skilled at helping companies find the policies that work for their employees. Let's explore some of the components of these different life insurance plans and how they can affect your employees.

Universal and Whole Life Insurance

Universal and whole life insurance are both forms of permanent life insurance. Universal life insurance offers flexibility in terms of premiums and death benefits, while whole life insurance provides guaranteed protection for the policyholder's entire lifetime. As long as an employees' premiums are paid, these policies can't be canceled. Universal life insurance policies are typically more affordable than whole life insurance policies, but they also come with more risk. For example, if the stock market crashes, the value of a universal life insurance policy may decrease. On the other hand, whole life insurance policies are not as affected by stock market fluctuations. These typically tend to favor lower-risk investments like bonds. When comparing universal life insurance and whole life insurance, it is crucial to consider your needs and objectives.

Term Life Insurance

Term life insurance offers coverage for a fixed period of time, known as the term. If the insured individual dies during the period, the death benefit will be paid to the beneficiaries. However, if the individual survives the term, the policy will expire, and no death benefit will be paid. Term life insurance is affordable, making it a popular choice for individuals who don't want to break the bank when adopting life insurance. Because it does not build up cash value, term life insurance is also a good option for individuals who are not interested in using their life insurance policy as an investment tool.

Benefits of Offering Life Insurance

When comparing universal, whole, and term life insurance plans, it's important to consider your company's needs and objectives. Ultimately, offering life insurance as a benefit in your organization can help you boost your brand as an employer and retain top talent. In today's competitive job market, employees expect high-value insurance plans. If you're looking for life insurance packages in Long Beach, CA and the nearby area, our experts at Employee Retention Benefits (ERB) will help guide you through your life insurance implementation.