Life insurance is a popular employee benefit, offering peace of mind at extremely low rates. These policies, usually known as basic life, do provide resources to your family members if something happens to you, but they may not be enough to fully replace your lost income. Here are a few things both employers and employees should understand about these policies.
A Guide to Basic Life Insurance
Employer-provided life insurance policies are usually based on your annual income, rounded up to the nearest thousand. For instance, if you earn $90,000 per year, your basic policy may be worth $180,000, depending on the specifics of your employer’s plan. Some policies only offer benefits equal to one year’s income, while others may provide two or three years.
The Benefits of Basic Life Policies
These policies are usually provided at little to no cost to employees, which makes them an attractive choice for most people. Because they’re part of a group plan, employees also have fewer options to choose from, preventing some of the confusion that comes from being presented with an overwhelming number of choices.
While two or three years of income may seem like a significant sum of money, it may not be enough to provide for your loved ones after you’re gone. For instance, if you want to leave behind enough to fund your children’s college education, allow your spouse to pay off the mortgage, or replace your income indefinitely, you’ll likely need to purchase a life insurance policy of your own.
From their offices in Boca Raton, Seeman Holtz offers customized life insurance solutions and employee benefit packages to clients across the country. Their agents work with a network of industry-leading carriers and will take the time to ensure you have the coverage you need. Visit their website for more on their services or call (800) 991-3592 to speak with an agent today.