Employers currently participating in open enrollment should use this time of year as an opportunity to evaluate and make adjustments to employee benefits packages. One area you might want to give extra consideration to is supplemental life insurance coverage.
BLS figures reveal that 60% of US employers offer life insurance benefits to full-time employees – more than I had anticipated! This life insurance coverage typically comes in the form of basic term life plans covering multiples of an employee’s annual salary (I have seen as little as 1X up to 3X, though some go higher). Should an employee die prematurely (the policy remains active at time of death), their beneficiary is paid out the policy’s value upon payment by some employers who make you opt-in; typically there is no premium charge associated with this coverage!
Employer-sponsored basic term life insurance plans may seem like an easy decision; however, many employers also provide voluntary supplemental life insurance options which may present additional challenges to employees. What exactly is voluntary supplemental life insurance and should I purchase it through my employer? Let’s explore more…
What Is Supplemental Life Insurance Offered By an Employer? Supplemental life insurance offered by an employer allows you to purchase additional term life coverage that goes above and beyond their basic coverage. Like basic coverage, additional term life can usually be purchased as multiples of annual salary and deducted directly from payroll.
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