Los Angeles CA- Comparing 401(K) Benefits Plans vs. Life Insurance for Employees

You work hard to ensure you can afford the things you need. From the house to the car to the food you put on your plate, you want to make sure you have enough income to cover all basic expenses with a bit of extra left over for the movies, or that fancy restaurant, or those really nice headphones. I mean, just look at them. They’re really striking!

But what about later? What will you expect to have left over when the income is not coming in anymore and you’re left with your retirement trying to cruise through your twilight years with enough wealth not to worry?

The secret is to take matters into your hands now and make preparations so you’re covered. Your employer-provided benefits should help with that.

Slay the 401(K) Game

Nearly everyone has heard of the 401(K), but what exactly is it?

The 401(K) is one of the most popular vessels for accumulating wealth and saving for retirement in America. For employer-based 401(K) plans, employees are able to deposit pre-tax income into an account where it is invested at their discretion in various stocks, bonds, mutual funds, ETFs, and other equities that provide growth over time. In addition, the money earns interest and the power of compound interest ensures it grows exponentially.

The effects of this growth are minimal at first, but 10, 20, and 30 years of interest accumulate and the effects become staggering. It is phenomenal how much interest one can earn by making conservative but consistent deposits into their 401(K).

What’s even better is that employers often offer some degree of company matching to incentivize an employee to plan for the future. This means free money!

With compound interest and free funds per an employer’s company match policies, it’s no wonder the 401(K) holds such weight today.

Life Insurance for Employees

Many individuals will also be interested in life insurance, which provides a payout to the employee’s loved ones in the event of their untimely death. Some employers may offer this as part of the benefits package in a format that varies depending on the employer’s specifications.

It could be as definitive as a low-cost, modest payout structure that might call for only a few dollars for a few hundred thousand upon payout. It could be more complicated offering no cost to the employee but paying out a portion of an employee’s salary if there is any tragedy.

Not all employers offer life insurance, but many do in our modern marketplace.

ERB For All Your Needs

For employers interested in ensuring they offer a competitive selection of benefits that cover their employees’ most basic needs and give them the tools to plan for a good future, Employee Retention Benefits has everything you need.

Contact ERB now and find out how they will help today!