The basics of voluntary life insurance Voluntary life insurance is optional life insurance you can purchase through your employer at a group rate. You’ll pay the premium yourself, but it will typically be more affordable than shopping for a private policy as an individual, since the risk is spread across the employees at your company who are covered. Your company may subsidize the premiums as well. There are two main types of life insurance: term life and whole life. Term life insurance Term life provides coverage for a set amount of years, often between 10 and 30.[2] You time the coverage to end around the time you stop needing it, which for many people is when their children are grown and...
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If you are looking to buy life insurance that you can claim as a business expense then you may be interested to know that relevant life insurance plans can be arranged whether you are self-employed or through your business or employer, attracting significant tax savings. Unsurprisingly, life insurance policies that attract tax relief are very attractive to company directors but also to high earning employees. Of course, tax avoidance should not be your primary driver but we all like to find ways to save where we can. Relevant life insurance offers employers a way to provide life insurance for employees - a common perk with most remuneration packages nowadays. Here we will explore how...
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Many employers offer basic life insurance to their employees as part of their benefits package. This type of life insurance policy is often for a pre-determined, set amount; it may be for $10,000 or a year's salary, for instance. It is usually offered at a very low cost or even free. Many companies also offer the option to purchase a supplemental life insurance policy as a way to expand your coverage, if needed. Before deciding whether or not to get a life insurance policy through your work, think about the pros and cons. Also, think about what type of coverage would meet your needs. The Pros and Cons of Buying Life Insurance Through Your Job A major benefit of getting life insurance...
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Is comparing group vs. term life insurance even necessary when you have coverage through your employee benefits plan? While it’s a nice perk, the coverage you get through a group plan is often not enough to protect your family if something happens to you. Read on to find out whether your situation requires more coverage through a term life insurance plan. Jump to section What is group life insurance? Group life insurance is a type of life insurance available as an employee benefit. Your employer negotiates a single contract covering everyone who’s eligible at your workplace. Group life insurance works through your employer. They negotiate a policy to cover all eligible employees at your...
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Group Insurance is when an organisation provides insurance to a group of people under a single master life insurance policy, which is typically a term or health insurance. A term policy is the simplest form of life insurance, wherein in case of the employee’s untimely death, his or her nominee receives a death benefit. The standard amount of coverage is either equivalent to a defined multiple of the covered employee’s annual salary or depends on the designation of the employee, and employers typically pay most or all the premiums. In line with the company’s consideration for the well-being of its employees and their families, companies offer Group Life Insurance covers as part of the...
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53 per cent of Canadians who have life insurance through their employer — and who do not have additional life insurance coverage — are between the ages of 30 to 50; which means they risk leaving their families financially burdened in the event of an untimely death TORONTO, May 4, 2021 /CNW/ - According to a new study from PolicyMe , a digital life insurance platform, the majority (62%) of Canadians with life insurance have it through their employer, and over half of those rely solely on employer-provided insurance despite many needing more to cover loved ones in the event of an untimely death. Of particular concern, the study found that 53 per cent of those without additional coverage are...
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What is Corporate-Owned Life Insurance (“COLI”)? Corporate-owned life insurance (“COLI”) refers to life insurance that is purchased by a corporation for its own use. The corporation can be either the full or partial beneficiary on the insurance policy. Typically, an employee or group of employees, corporate owner, or debtor are listed as the insured(s). COLI differs from group life insurance policies that are offered to employees of a corporation because COLI benefits the corporation itself, whereas general life insurance policies are designed to protect the corporation’s employees and their families. COLI can be structured in many different ways to accomplish...
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Like many Americans, it's likely you have a life insurance policy through your work — and it's also likely you haven't thought much about it. Company-paid life insurance is a popular and valuable employee benefit. Often, you can receive discounted or free coverage through these programs. So getting basic life insurance through an employer is a win-win benefit, right? Not quite. Relying solely on employer life insurance can have some potential downsides that are important to consider because it could leave your beneficiaries and loved ones unprotected. It might be time to examine your coverage and think about your personal needs. Here's what you need to know about employer-paid life...
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More Like This: Life insurance helps provide security for loved ones when a main source of income is lost. Voluntary life insurance is a type of employer-provided life insurance that employees can opt into if they choose. In most cases, employees will pay scheduled premiums to keep the policy active. Sometimes, it can come directly from the employee’s paycheck. This feature may be attractive because they won’t have to worry about staying on top of another bill. Read on to learn how voluntary life insurance can benefit employers and employees. We also offer individual whole and term life insurance policies, if getting voluntary life insurance through your employer isn’t an option. Types of...
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What's the difference between basic and supplemental employee life insurance? A basic life insurance policy offered through an employer is typically free or has a minimal premium and offers a death benefit that might range from $25,000 to one or two times your annual salary, while you're employed by that company. In addition to a basic policy, supplemental life insurance coverage might be offered by an employer for an additional premium. You might decide to pay for this additional coverage if your employer's basic life insurance coverage wouldn't be enough for your beneficiaries in the long run. If your employer doesn't offer supplemental life insurance, you can look into buying a policy...
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