Life insurance pays out a lump sum to help provide financial protection for an employee’s family members in the event of the employee’s death. Coverage can be updated to reflect changes in life such as getting married, buying a home or having a child. Most plans offer spouse and child coverage, as well. There are two types of life insurance, term life and whole life.
• Term life: Provides financial protection for employees for their high-demand working years, typically in 10-, 20- or 30-year terms
• Whole life: Provides financial protection for employees during their working and retirement years with permanent coverage at rates that remain consistent for life. Often includes cash value.
These plans are portable if you retire, transfer, or leave your employment.
