Group Whole Life Insurance
A meaningful benefit to help increase employee financial well-being
What is Group Whole Life Insurance?
Group Whole Life Insurance is a permanent life insurance option that can protect your employees beyond traditional term policies, which typically last only as long as their employment tenure. Unlike term insurance, whole life accumulates guaranteed cash value that increases each year on a tax-deferred basis and never decreases in value due to market conditions. So, it can be a reliable alternate source of funds for employees during financial downturns.1
How It Can Benefit Your Employees
In addition to paying out a death benefit, whole life insurance allows employees to access the guaranteed cash value to help meet a variety of financial goals, such as paying for college, supplementing their retirement income, or obtaining cash for emergencies.2 And, because it’s portable employees can take it with them if they leave the company. Whole life insurance also offers some valuable income tax advantages. Overall, it can play an important role in your employee’s financial wellness strategy.
A True 'Win-Win' Benefit
Boost employee benefits with a product that supports diverse financial goals. When employees have financial security, productivity improves. Group Whole Life helps attract and retain talent by offering financial solutions for employee well-being—ideal as a stand-alone benefit or alongside a group term plan.
- Cost-effective coverage
- Easy application process
- Guaranteed death benefit
- Guaranteed cash value
- Guaranteed level premium
- Tax advantages
- Dividend-eligible3
- Portable coverage
- Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty if the policyowner is under age 59½.
- Access to cash values through borrowing or partial surrenders will reduce the policy’s cash value and death benefit, increase the chance the policy will lapse and may result in a tax liability if the policy terminates before the death of the insured.
- Dividends are not guaranteed.
The information provided is not written or intended as specific tax or legal advice. FundaDream, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.