Life insurance is one of the most requested benefits and can help attract new employees with families. Life insurance can be employer-paid or a voluntary benefit. Supplemental is also an option to add to existing life insurance plans.

Employers may pay 100% of employee life insurance premiums, or employees may contribute some or all of the costs. Typical plans pay flat dollar amounts as a death benefit or may specify the number of payments over time based on a percentage of the employee’s salary. Two types of life insurance are commonly offered:

• Term – Death benefit that pays out during a specified period if death occurs. A temporary policy since it may only be paid out if the insured dies during the term specified.
• Whole – Permanent life insurance that extends for the duration of the insured’s lifetime. Premiums can work toward building a savings account, borrowed from or stopped once the insured reaches a contractual age.

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