Forms for Brokers
Group Term Life Insurance
This is the most common of the various life insurance options. As a general rule the group policy is available to all active employees regardless of health. Rates are in 5-year age-banded increments and change when an employee moves from one band to another (i.e. employee turns 35). In addition there is generally an opportunity to purchase coverage on a spouse and children.
Individual Term Life
As an alternative to the group model companies may choose to offer their employees the opportunity to purchase an individual policy. While the employer will make the appropriate deductions from the employee's paycheck, the employee is really buying an individual policy. Individual Term Life Insurance may be either a 5-year, 10-year, 20 or 30-year term. Underwriting (health questions to qualify) will vary by insurance company as will the amount of coverage available.
Universal Life Insurance
Like Term Insurance this type of product can be offered on either a group platform or as individual policies. The choice of which to offer can best be determined by working with a high quality Employee Benefits Professional. Universal Life is designed to be a cost-effective approach to permanent coverage. It builds cash value that earns current interest rates. Rates for a Universal Life policy are higher than for Term Life but lower than that of a Whole Life policy.
Whole Life Insurance
This plan can also be offered on a group or individual platform. Whole Life Insurance is very much a "what you see is what you get" type of product. All aspects of the policy are guaranteed such as premiums, cash value and death benefit. For most of your employees the only life insurance that they will ever own will be what they can purchase at work.