Group term life insurance is one type of employer-provided life insurance that may be included in your employee benefits package. It is an option for all of a company’s employees if it is available.
A death benefit is provided by term life insurance to the insured’s beneficiary. It is only in effect for a certain amount of time. The term life insurance that an employer offers is only valid for as long as the employee is employed by the company.
An employee’s annual salary is typically multiplied by the amount of coverage. Alternately, it might be related to an employee’s position at the business. Most of the time, employers cover most or all of the premiums.
If you don’t have any other life insurance, employer-provided life insurance can be beneficial. However, keep in mind that it only applies to the employee, not their spouse or children. Also, it’s important to think about whether the coverage you get is enough to cover your expenses.
Learn about the dangers of relying solely on an employer-provided plan and how to determine whether you should purchase additional individual life insurance policies outside of your employer.
