Skip to main content

Receiving life insurance as part of your employee benefits


As a benefit, employers may offer employees life insurance. The reason to add this as part of a comprehensive set of benefits would be to entice recruits to work for that company. The employee benefits in that, in the event of his or her death, a lump sum is paid out to nominated beneficiaries.
The average Australian household had debt totalling about $91,018 in the financial year 2016/2017 (http://www.medianet.com.au/releases/145748/). Should the breadwinner pass away, or, after an accident, not be able to work anymore, the family would be left with that debt. However, a life insurance covers such an event financially, which is why receiving it as part of your employee benefits may be a lifesaver for your family.

Benefits of offering employees life insurance

Employees can benefit from life insurance by having that just-in-case cover, particularly for those who are single-income earners with children. In addition, employees may also benefit from tax breaks. In this case, an employer can gain the benefit of tax-free coverage up to $50 000. This is easy for the employee to administer, as it does not need much monitoring.

Downside of offering employees life insurance

In the event of a claim being made, some paperwork will be required, such as filing the claim with a death certificate. However, the employee may not value or use this perk.

Key types of life insurance offered

The three main types of life insurance policies that employees may obtain have their own benefits:
·         The full life insurance covers the family in the event of an emergency, funds able to be withdrawn before death. This sort of life insurance, although being an investment, is not the ideal from of investing, the rate of return being low. This policy remains active as long as the premiums are paid.
·         The variable life insurance places a portion of the monthly payments into investment accounts, such as stock funds, bond funds, or a money-market account managed by the insurance company. This also implies that the investment may fluctuate, although there is normally a minimum guaranteed amount to be paid out to the nominated beneficiaries after death of the policyholder.


·         The universal life insurance cover is similar to variable life insurance in that the funds are invested and paid out; however, the savings grow on a tax-deferred basis. 
Labels:

Comments

Post a Comment

Popular posts from this blog

LESSONS IN MINDFULNESS FROM THE TAO OF POOH

It’s nearly four decades since Benjamin Hoff released his bestseller, The Tao of Pooh. The book focused on Taoist life lessons. Taoism is a philosophy with its origins in China. Taoism teaches listeners how to live in harmony with the universe. Benjamin did show that practitioners are not automatically wise women and men from the Far East. Rather, the real master of Tao was Winnie the Pooh. The Tao of Pooh offers precious life lessons that truly resonate with our new reality. The central character of the book is Winnie the Pooh. Winnie personifies the Taoist belief of non-action or merely being. Like Piglet, Owl, Tigger, and Eeyore, other characters represent the human  predisposition to overcomplicate things in life. Taoism: Tao means ‘path’ or ‘way,’ and Taoism has its roots in an ancient book written in about the 3rd century BC −Tao Te Ching (The Way and its Power) by  Laozi;. However, some believe the book was written by different authors. Still, in simple terms, the philo...
Post a Comment
Read more

6 Tips for the ultimate Mediterranean bathroom

A bathroom can be expensive to decorate, but it can also add much value to your property. However, if you need to correct mistakes, not only could the renovations upset your budget, but also can greatly reduce any rate of return on your investment. The best option, therefore, is to plan your bathroom with professionals, such as bathroom designers, who can advise you on quality tiles and fittings, and make recommendations for reliable tilers and plumbers. However, besides the functionality of the bathroom, over and above the layout and plumbing, most of us are more concerned with an aesthetic appearance. If, for instance, your main bedroom already sports the Mediterranean style, you might want that style flowing into your bathroom, creating a connection between the two spaces. 1 The choice between classic and modern Deciding between a modern bathroom, or a classic interpretation of the Mediterranean style will depend on your own preference. It will also be determined by the loo...
Post a Comment
Read more

Quo Vadis – Go On a Once-In-A-Lifetime Seychelles Adventure

Do you want to experience the beauty of the islands and atolls of the Seychelles? In this crystal-clear water, brilliantly coloured reefs and abundant exotic fish species, guided snorkelling, diving, and freediving trips are on offer − all while onboard the custom-built and fully equipped MV Quo Vadis. Explore uninhabited islands in the Seychelles Explore the most remote uninhabited islands in the Seychelles, up close. At various dive stops you will see manta rays, stingrays, turtles, moray eels, barracuda, sharks, tuna, grouper, snapper, trevally, and many more vibrant and rare species. Divers can also experience the most enchanting marine life, with waters lapping the side of the hull as gently as a luxury resort swimming pool, but surrounded by the special tropical blue and green of the islands. These islands are bounded by pearly white sands and granite rock formations and highlighted by the sun's radiance. Go on an adrenaline rush Guided snorkelling, diving, and freedi...
Post a Comment
Read more