Employer/Employee Benefits
Life Insurance
When your employees have loved ones who depend on their income, give them peace of mind by offering a life insurance policy. A wide array of coverages means there’s a policy for everyone.
This becomes all the more challenging as “baby boomers” and generation Xers are already in their retirement years. It is more important than ever to be able to effectively meet the insurance needs of these customer segments. Next Horizon can effectively help you meet your unique needs with the following product offerings
Term Life
This policy provides a death benefit but no cash build up component. The premium remains constant only for a specified term of years, and the policy is usually renewable at the end of each term. While most term is available, Next Horizon has chosen to focus on 10, 15, 20, and 30 year terms as we believe these terms to be most useful to policyholders. Term life is a great no frills insurance value. Let Next Horizon help you choose Term Life options for all your employees.
Universal Life
In contrast to Term Life insurance, Universal Life insurance provides a powerful, flexible insurance with cash build up component which earns interest that is typically determined by the insurer. With this policy, the holder can maintain coverage at any age. This is sure to appeal to the large market of elder consumers.
The cash value accrued is usually a portion of the premium. Premiums are adjustable and typically increase as the policyholder ages. If premiums are not completely paid, the insurer makes deductions from the cash value portion of the policy. Policyholders are provided the flexibility of varying, within limits, the amount and timing of premium payments and death benefit coverage. These changes can be made while the policy is in force. These features are especially appealing to the ‘hands-on’ consumers.
The Cash Value portion of the policy is not guaranteed, but it is possible the cash value in a universal life insurance policy could outpace the cost of insurance. In the event of such favorable circumstances, the policyholder typically has a choice as to how these funds are handled:
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Allow the funds to remain in the policy and accumulate interest. Taxes are avoided until the policyholder realizes the cash value. Additionally, future premiums may be reduced.
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Funds can be cashed out. The funds are then treated as taxable income and lower the policy’s cash value.
Whole Life
While Universal Life does not guarantee cash value, Whole Life offers the appealing and tangible benefit of guaranteed cash value. Whole Life will certainly appeal to those consumers who like the safety and certainty of a sure thing. The low risk of Whole Life is reflected in its higher premiums.
The appeal of Whole Life is further enhanced by the fact that this policy never has to be renewed or converted. So, no matter what happens to the policyholder, their premiums will not change. The benefits of Whole Life insurance include:
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Premium levels do not increase with age
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Level death benefit up to age 100
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Guaranteed cash value
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Relatively high degree of safety