Employee Insurance Program

The most commonly known insurance plans are life, homeowners, health, and auto among others. In most cases, insurance policies consist of three elements namely; policy limit, premium, and deductible in order to offer alternatives that suit the preferences of customers. Therefore, this study will explore various types of insurance programs that deal with compensation and benefits in organizations and will majorly focus on “accidental death and dismemberment insurance, term life insurance, long and short-term disability, and universal and whole life insurance programs. ” Term Life Insurance “Life insurance” can be described as a settlement between a policyholder and an insurer. In this case, the insurer agrees to provide financial protection in terms of death benefit payment to the named beneficiaries when the insured has deceased or alive based on the policy. However, despite the fact that term life insurance has a potential of replacing lost prospective income, its benefits come once with all the totals and not in regular payments.

Accidental Death and Dismemberment Insurance This policy is likely to offer benefits to its subscribers, but can it be counted on? What is AD&D and what are some of its advantages? This insurance covers the insured or the beneficiaries with a specified sum of money in case the death or dismemberment of the insured occur due to an accident. Thus, this is a limited form of insurance coverage that only covers the insured during accidents only. Well, how does it operate? The “Accidental Death and Dismemberment Insurance” is only eligible to the policyholders who have met the age limit and usually the coverage is guaranteed instantly without requirements of any medical examination (Standard Insurance Company, 2016). The benefits of the insurance go to the specified beneficiaries if the insured dies from an accident covered in the policy and not predetermined natural causes.

Unlike other insurance plans, whole life insurance comes more as an investment product. This is because it offers those insured with death benefits, but its cash value also builds in response to time. This means that specified beneficiaries are guaranteed death benefits and some extra savings if the insured policyholder is dead (Reed, 2016). This policy allows those insured to borrow against their cash value since cash values are guaranteed or individuals can surrender their policy in exchange for the cash value in hard cash. With this policy, those insured are allowed to take participation in the company’s surplus and receive annual dividends in cash or in form of interest or even make a purchase of additional coverage. To receive this benefits, an employee must accept to be subscribed to this plan before unable to work and covers one for about 9 to 52 weeks.

However, employee or those insured need to work for some specified amount of time upon confirming the situation. Employees under this plan are eligible for 40 to 60 percent wages. Long-term disability insurance of the other hand is effective when employees experience prolonged illness or injury. Those covered with this policy can receive coverage for almost 5 to 10 years until one reaches 65 years of age and offers 50 to 70 wages. investopedia. com/terms/i/insurance. asp Northwestern Mutual, (2014). Term or Permanent Life Insurance. Which Options is Right for You? Retrieved from http://media. ext. vt. edu/content/dam/pubs_ext_vt_edu/354/354-146/354-146_pdf. pdf Standard Insurance Company, (2016). Life and Accidental Death and Dismemberment Plan.