When it comes to providing a benefits package for your employees, life insurance is often one of the most critical components. Several types of life insurance are available, each with different features, advantages, and disadvantages. In this article, we’ll explore the differences between universal, whole, and term life insurance so you can decide which type to offer your employees.
Universal Life Insurance
Universal life insurance suits individuals looking for long-term protection with added flexibility. Premiums and death benefits can be adjusted according to the policyholder’s needs and the performance of their investments. Additionally, some carriers offer living benefits allowing policyholders to access cash value accumulated within the policy should they become terminally ill or disabled. This type of coverage can be helpful for beneficiaries to get a life insurance payout no matter when an employee dies, as long as the employee has paid the premiums needed to keep the policy in force.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance providing lifelong coverage regardless of how long you live. It also accumulates cash value over time, which can be used as collateral during emergencies or retirement planning. The premiums remain fixed throughout the policyholder’s lifetime and cannot be changed by either party once established. As such, it’s best suited for those who want to leave an inheritance for their loved ones or provide financial security in case something unexpected happens to them.
Term Life Insurance
Term life insurance is an affordable way for individuals to purchase coverage for a limited period—typically ten years or 20 years—and does not have any additional features such as savings components or living benefits like those found in whole and universal policies, respectively. Because it does not build cash value over time as other types of policies do, term life insurance is more affordable than its permanent counterparts. Still, it does require you reapply for coverage after the specified term has expired if you wish to continue having coverage in place.
No matter what type of employee life insurance you choose for your organization’s benefits package, it’s essential to understand the differences between the various options available to make an educated decision when selecting the right plan for your employees’ needs. Universal, whole, and term employee life insurance plans offer distinct advantages depending on individual needs; understanding these differences will help ensure you select the best fit for your organization and its employees.
At Employee Retention Benefits, we aim to make insurance implementation easy and accessible. We are committed to providing our customers with a premier experience, so they can focus on managing their businesses without worrying about the uncertainty of financial planning. We have created relationships with over 120 insurance carriers to offer whole, term, and life insurance options for organizations. Our knowledgeable team prides itself on delivering customer service that exceeds expectations, ensuring your organization is stress-free and has an excellent ongoing customer experience. If you’re an organization in the Riverside, CA, area, don’t hesitate to reach out to our team at Employee Retention Benefits.
