Voluntary Life Insurance Plan
Company paid life insurance plans offer employees good, basic protection that provides meaningful death benefits to their beneficiary. The benefit is typically in the form of term insurance with coverage amounting to at least one times annual base salary up to some predetermined maximum level. Employees have the ability to purchase additional term coverage for themselves, their spouse and family members.
Organizations today are also making available voluntary, employee pay all life insurance plans; they differ from company paid term insurance in that these policies are permanent life insurance policies; they protect the policyholder through his/her lifetime, the death benefits are typically smaller than term insurance policies, but they provide cash value that can be accessed at retirement. Whole life insurance and Universal life insurance are the two prevalent voluntary products with the following features:
- Provides a death benefit, guaranteed minimum cash value, and investment build up
- Investment earnings are tax deferred
- Discounted, level premiums throughout the lifetime of the policy
- Guaranteed, renewable protection that cannot be reduced
- Individually owned, portable policies
As with all voluntary benefits that TPP oversees, we provide clients with a full array of services including plan design consulting, securing best in class insurers, developing the communications strategy and content, managing the overall enrollment and future reenrollments.
