Many businesses offer life insurance as part of the company’s benefits package, and it’s one many employees are glad to take advantage of. Insurance carriers and benefits groups offer a wide variety of options, some of which give you the ability to offer appealing benefits at relatively low cost. Louis John Stanzione at Fairfield Green Enterprises, a financial advisor serving clients from their offices in Summit, NJ, explains how to choose the best life insurance package for your company.

Selecting a plan involves making several vital decisions. Here’s a quick breakdown.

Which Employees To Include?

To take advantage of federal tax breaks and other advantages, your benefits must cover at least 70% of your employees, and it cannot unfairly favor key workers. However, you may base your benefits on distinctions such as length of service, level of compensation, or participation in another benefit plan.

What Type Of Insurance To Provide?

Group-term life insurance is the most popular choice for employee benefits, but you may want to offer Accidental Death and Dismemberment or Split-Dollar policies for key members. Consult a financial consulting professional for more information about these additional policies.

How Much Insurance To Offer?

Your life insurance plan can offer either a fixed amount for each employee or a figured based on a percentage of their wages. However, if you offer more than $50,000 in coverage, your employees will have to pay income taxes on the benefit.

Louis John Stanzione at Fairfield Green Enterprises has extensive experience with every aspect of the industry, from group policies to high-value life insurance. Visit his website to learn more or call (908) 277-2603 to discuss your employees' benefits today. You can also find him on Facebook.