Life Insurance For Your Employees

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Life Insurance For Your Employees
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• As the owner of a small business, should you be
  offering your employees life insurance? Here we
  look in a little more detail at life insurance
  and what types are available
• What is life insurance?
• In the event of an employees death, life
  insurance pays the legally designated beneficiary
  a lump sum, and as an employer, this is an
  affordable and straightforward benefit that you
  can offer your employees.

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• What are the types of life insurance available?
• There are 5 different types of life insurance
  plans well look at each one along with advice
  as to when it might be appropriate to offer it to
  employees
• Group term life insurance
• This cost-effective, simple and tax-free form of
  employer-provided life insurance is always a
  popular choice and can be set to last only for
  the duration of an employees paid contract with
  the business.
• For a company with a workforce comprised of
  younger employees, this may not make so much
  sense, otherwise it can be offered by employers
  of businesses large and small to their employees.

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• Permanent life insurance
• These plans accumulate cash value over time and
  cost more than group term policies. While a good
  option for younger employees in good health, they
  can be expensive for older workers.
• If your workforce is younger and highly
  compensated, then this type of insurance might be
  preferable to offer.

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• Whole life insurance
• In the case of an emergency, this kind of life
  insurance plan can also function as cash and
  covers the individual for their entire life
  provided the premiums are paid. That said, these
  plans are known to offer little return on
  investment for employers.
• Whole life insurance is generally not recommended
  as an employee benefit.
• Variable life insurance
• With this plan, part of the premium can be
  allocated to an investment account, and these can
  be made up of stocks, money market or bond funds.

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• Like all investments, however, with fluctuating
  markets the value of the plan can decrease.
• Its advisable that employees themselves purchase
  this kind of insurance, and not for it to be
  offered as part of an employer benefits package.
• Universal life insurance
• In much the same way as variable life insurance,
  this plan has a separate account that funds can
  be allocated to. With a savings component that
  can grow on a tax-deferred basis, its comprised
  of bonds, mortgages and money market funds as
  invested by the insurance provider.

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• While variable life insurance does not have a
  guaranteed return of around 4 as part of the
  policy, universal policies do.
• Again, its not recommended for employers to
  offer this as part of their benefits package, but
  rather for employees themselves to purchase it
  independently.
• If you need more help, advice and guidance about
  selecting a life insurance plan for your
  employees, then reach out to a professional
  company who can give you their clear and unbiased
  opinion.

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• Apollo Payroll is one of the premier small
  business payroll services companies in Miami and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  payroll services in Homestead and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Miami Coral Gables