Voluntary Life Insurance

Voluntary Life Insurance

A life insurance policy that an employee may elect to purchase if he/she feels the employer-sponsored insurance does not provide sufficient coverage. The employee pays all premiums on his/her own (that is, without help from the employer). The death benefit of a voluntary life insurance plan is usually expressed as a multiple of the employee's annual income. For example, the plan may pay three times the employee's final salary when he/she passes away.
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In terms of how much coverage employees are choosing with Colonial Life's plans, coverage for voluntary life insurance tends to be in the $100,000-to-$200,000 range.
have an idea for how to improve Americans' life insurance coverage: Make sure employers know that workers like having access to voluntary life insurance benefits programs.
Take the evolution in voluntary life insurance, for example.
More than 90 percent of the employers offered vision insurance and dental insurance through their private exchange programs in 2015, and 87 percent offered voluntary life insurance.
And 72 percent of those employees said they would be more likely to take advantage of benefits offered, like voluntary life insurance, if those products were tailored to their personal situations.
Voluntary life insurance plans put the power back in the hands of employees, enabling them to make decisions that best fit their needs.
But they easily can make this vital financial protection and customized benefits education available to their employees at no cost to the business through voluntary life insurance.
Voluntary life insurance can be available even in small accounts where the employer isn't paying for anything.
Voluntary life insurance through the employer is also a good deal for older workers, says Mike Share, benefits producer with Tobias Insurance Group, Indianapolis.
If you sponsor an employee-paid voluntary life insurance plan and the rate schedule straddles the IRS table I rates (meaning some of your age bands are higher than Table I and some are lower), you need to impute income on the value of the life benefit for age bands that fall below Table I.
1In response to the increased demand for its supplemental health benefits and voluntary life insurance products, Transamerica is substantially expanding its sales team.
The DIY employers were almost as likely as the total outsources to say they want to increase employee satisfaction with the value of the benefits package, but the DIY employers were not even all that likely to offer basic benefits such as life insurance: Just 51 percent offer any kind of employer-paid or voluntary life insurance benefits, compared with 69 percent of the total outsources.
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