One important lesson in life to learn is this: whatever assets you have, those are your assets only; they are not your liabilities. Your assets are what you use to finance your obligations, while liabilities are what you owe in the form of debt. So the question to answer here is this: what is an employer-provided life insurance? And why is it better than the other types of coverage available in the market?
In simple terms, employer-provided life insurance means that any of your employees who dies during the course of employment will be compensated financially for their loss. The word ’employee’ in this clause does not imply any legal obligation on the part of the employer. Rather, it simply refers to the fact that the company takes responsibility for the financial security of its employees. In other words, your employees are your financial security. So whatever assets you possess, those are also your employees’ assets, and you must ensure that they are well taken care of after they die.
Of course, you wouldn’t want to leave something like your home to strangers. So to provide financial security to your home-makers, you too must have an employer-provided life insurance. However, while this coverage ensures that your loved ones are properly taken care of after you pass away, it does not provide any other type of monetary benefit to your estate or your survivors. For instance, it would not help your surviving children buy a home or settle other financial issues. Therefore, this kind of coverage is best suited for those whose lives are long and whose financial needs are not so great.
On the other hand, employer-provided life insurance is a good option if you have a family, especially if your breadwinner is your daughter. But you must note that the kind of coverage provided by your employer depends on the rules and regulations set by your company. For instance, some companies may not provide it to females above the age of fifty. Likewise, there are others who may only provide certain kinds of coverage such as burial expenses and personal liability. For instance, there are some employers who may not provide life insurance to their full-time employees, but only to part-time workers who are working less than thirty hours a week. And there are others who may opt to limit the coverage to the spouse and the children of the worker only.
Another case where employer-provided life insurance policy is advisable is when you run a business or you are an employer who wants to provide financial protection to his workers. If you work in a company where the younger ones are the most promising and productive, then this type of coverage could be the most financially viable option for you. In fact, most companies consider this type of coverage as a sort of investment because the premium for this particular policy does not increase significantly as the worker gets older. This is also very helpful if you run a small business where you would need to replace a large number of senior employees with relatively young employees who do not have as much experience.
You can also use your employees’ health benefits as your employee’s investment. In most cases, you can choose a key employee to serve as the beneficiary for the entire benefit period. The benefit could be used to purchase a policy that allows for higher premiums. However, there are companies that allow the key employees to keep the option of purchasing individual life insurance policies that will allow them to choose the type of coverage they want.
If you have an employer-provided life insurance policy, you can also choose to take up a separate policy that allows you to protect your family from certain financial disasters or events that could happen. For example, you can add your spouse or a dependent of yours to your policy so that if you are not around to provide for the children, they will still be taken care of. You can also make your own choices for beneficiaries and terms. Basically, you are creating a “back up plan” in case something happens to you or one of your key employees. The nice thing about this type of coverage is that it gives you the ability to protect your loved ones even if your own health declines.
If you are looking for life insurance, it is highly important that you look for policies that offer life insurance while you are still employed by your employer. There are many benefits that allow you to choose between whole life and term policies. When you work for an employer, you will find many different options to choose from so that you can get the coverage you need. You may even be able to buy a small amount of flexible insurance that will allow you to take up the risk of financial needs that may arise in the future.