In-Depth Guide to Business & Employee
Insurance Solutions

Worksite Insurance

Offering competitive benefits is key to attracting and retaining top talent, reducing turnover, and improving your bottom line.

Employers

Our Worksite Voluntary Benefit Solutions cater to your employees’ supplemental insurance needs without incurring direct costs to your business. Enhance your existing benefits package with attractive options such as term life, short-term disability, critical illness, and accident insurance. These additions provide a competitive edge and maintain your bottom line.

Employees

Our Worksite insurance benefits are designed to complement your current employer-provided insurance. Most of our worksite products are portable, except for Voluntary Short-Term Disability (group plan), allowing you to retain coverage if you transition away from the organization.

Life's Constant Changes

If your employer doesn’t offer our Worksite products, or if you need additional coverage, we provide individual life and disability income (DI) insurance to protect you through all of life’s moments:
  • Family Sizes Change
  • Homes Change
  • Levels of Income Change
As family sizes, homes, and income levels change, your protection should adapt too. Getting the coverage you need has never been easier!

Products

  • Term Life Insurance
This insurance covers you for a specified term, such as 10, 20, or 30 years. If you pass away during this term, the policy provides a death benefit to your beneficiaries. It’s an affordable and simple solution, ideal for meeting specific financial responsibilities like mortgage payments or educational expenses for children.
  • Accident Insurance
Accident insurance offers compensation if you are injured or pass away due to an accident. This coverage is essential for covering medical bills, hospital stays, and related expenses, and is particularly valuable for those in physically demanding jobs or with active lifestyles.
  • Critical Illness Insurance
Receive a lump-sum payment upon diagnosis with a covered serious illness, such as cancer, heart attack, or stroke. Use this payment for any expenses, from medical bills to living costs or home modifications to meet new health needs.
  • Hospital Indemnity Insurance
This insurance provides a fixed cash benefit for hospital admissions, irrespective of other insurance coverage. It can help manage:
  • Room and board expenses
  • Costs of medical supplies and equipment
  • Charges for diagnostic tests and surgical procedures
The benefits are paid directly to you, allowing flexibility in covering out-of-pocket medical or non-medical expenses during recovery.

Short-Term Disability - Group Insurance

  • Individual: Offers income replacement if you're temporarily unable to work due to illness or injury. Coverage usually lasts up to six months, providing crucial financial stability.
  • Group: Available through employers, this insurance helps maintain employee satisfaction and retention by covering income during temporary disabilities.

Wellness Benefit Rider - Helps You Stay Proactive

Did you know that the Wellness Benefit Rider, available at an additional cost for worksite accident and critical illness policies, gives policy owners a monetary benefit for completing eligible health screening tests? The benefit is available in $50 increments up to $200 for worksite accident insurance, and up to $150 for worksite critical illness insurance.
Submitting annual Wellness Benefit Rider claims can help pay for the cost of certain health screening tests once per year. Being proactive with your health screening tests means you can detect some medical issues earlier – helping you to manage some of life’s unexpected medical challenges.

Group Life Insurance

A cost-effective benefit for employees, this insurance covers a group under a single contract and is often part of an employment benefits package. It offers basic coverage with the option for individuals to buy additional insurance at their own cost.

Short-Term Disability - Group Insurance

  • Single Contract: Instead of individual policies for each member, there is one master policy that covers all members of the group.
  • Employer-Sponsored: Most commonly provided by employers as part of an employee benefits package. Premiums are often partially or fully paid by the employer.
  • Lower Costs: Generally less expensive than individual life insurance because the risk is spread over a larger group of people.
  • Simplified Underwriting: Often does not require medical exams for individual members, making it easier to qualify for coverage.
  • Basic Coverage: Typically offers basic life insurance coverage, but members may have the option to purchase additional coverage at their own expense.
  • Portability: Some policies offer portability, allowing members to continue their coverage if they leave the group, though usually at higher individual rates.

Types of Group Life Insurance

  • Term Life Insurance: The most common type, providing coverage for a specified period (e.g., one year, renewable annually). If a member dies during this period, their beneficiaries receive the death benefit.
  • Permanent Life Insurance: Less common in group settings, this type provides lifelong coverage and often includes a cash value component.

Advantages

  • Affordability: Lower premiums due to pooled risk.
  • Accessibility: Easier access to coverage without stringent medical underwriting.
  • Convenience: Payroll deductions for premium payments simplify the process for employees.
  • Employee Benefit: Enhances the overall benefits package, helping attract and retain employees.

Disadvantages

  • Limited Coverage: The basic coverage amount may be insufficient for individual needs.
  • Lack of Customization: Limited options for tailoring coverage to individual circumstances.
  • Dependence on Employment: Coverage is typically tied to employment, meaning the loss of a job may result in loss of insurance.

Considerations for Employers

Employers offering group life insurance need to consider the cost, the administrative burden, and the benefit’s impact on employee satisfaction and retention. It is also important to communicate the details of the coverage to employees effectively.

Considerations for Employees

Employees should evaluate whether the basic coverage meets their needs and consider supplementing it with additional individual policies if necessary. Understanding the terms of portability and conversion options if they leave the employer is also crucial.
In summary, group life insurance is a practical and cost-effective way for employers to provide life insurance benefits to their employees, though it may require supplementation for comprehensive individual coverage.

Business Uses of Life Insurance

Life insurance is a versatile tool used in various business contexts to ensure continuity and stability, especially when dealing with the transfer of ownership upon the death or disability of an owner or key personnel. Here are some common business uses of life insurance:

Buy-Sell Agreements

  • Buy-sell agreements, also known as business continuation agreements, are designed to manage the transfer of business ownership in the event of an owner's death or disability.
  • These agreements are crucial for maintaining the business's stability and ensuring a smooth transition.

Buy-Sell Funding for Sole Proprietors

For sole proprietors, a two-step business continuation plan can be implemented to ensure the business continues after the proprietor’s death:
  • Buy-Sell Plan: An attorney drafts a buy-sell agreement detailing the employee’s agreement to purchase the business from the proprietor’s estate at a pre-agreed price.
  • Insurance Policy: The employee buys a life insurance policy on the proprietor’s life. The employee is the policy, beneficiary, and pays the premiums. Upon the proprietor’s death, the insurance proceeds are used to buy the business.

Buy-Sell Funding for Partnerships

There are two main types of buy-sell agreements for partnerships: cross-purchase plans and entity plans.
  • Cross-Purchase Plans: Each partner buys, pays the premiums for, and is the beneficiary of a life insurance policy on the other partners. The death benefit corresponds to each partner's share of the business. Upon a partner’s death, the surviving partners use the death benefits to buy the deceased partner’s share.
  • Entity Plans: The partnership itself buys and pays the premiums for each partner and is the beneficiary of life insurance policies. These plans are more suitable for businesses with several partners. When a partner dies, the partnership uses the insurance proceeds to buy the deceased partner’s share of the business.

Buy-Sell Funding for Close Corporations

A close corporation, often a family business, can utilize either cross-purchase or entity plans (termed stock redemption plans in this context).
  • Close Corporation Cross-Purchase Plan:
Surviving stockholders buy the deceased stockholder’s interest. Each stockholder owns, pays premiums, and is the beneficiary of life insurance policies on the other stockholders.
  • Close Corporation Stock Redemption Plan:
The corporation buys, pays premiums, and is the beneficiary of life insurance policies for each stockholder.
The insurance amount equals each stockholder’s share of the corporation’s purchase price. Upon a stockholder’s death, the corporation redeems the deceased stockholder’s shares using the insurance proceeds.

Key Person Insurance

  • Key person insurance helps protect a business from financial loss due to the death of a crucial owner, officer, or manager.
  • The company owns, pays premiums for, and is the beneficiary of the key person's life insurance policy.
  • This type of insurance covers costs such as finding and training a replacement. While premiums are not tax-deductible, the death benefits received by the business are not taxable.

Summary

Life insurance serves multiple critical roles in business planning, from ensuring smooth ownership transitions through buy-sell agreements to protecting against the loss of key personnel. By strategically using life insurance, businesses can safeguard their continuity and financial stability.