Life insurance can provide years of income to your loved ones in an affordable way. In the event of your passing, life insurance is a promise to pay money directly to your beneficiaries. In addition to covering your family’s daily expenses, life insurance can help your beneficiaries: [list_bullet type=”check” ]
- Maintain their standard of living
- Pay off any household debt
- Secure your children’s education
- Supplement retirement savings
Advantages to the Employer
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- Reduced turnover, saving your money in hiring and training costs
- Contributes to employee security, loyalty and higher morale
- Valuable life insurance protection provided at a low group rate
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.
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Coverage is maintained either at similar levels for all employees or at varying levels for each category of employees. The levels may be revised annually or periodically. Some employers choose this method for ease of budgeting and confidentiality.
Coverage is calculated by multiplying the annual salary by the formula of coverage. The formula varies from one to five times annual salary. A minimum of twice annual salary is recommended.