What is Relevant Life Insurance
When most business owners think about life insurance, the first thing that comes to mind is likely term life insurance. And for good reason – it’s typically the most affordable and common type of life insurance.
But there are other types of life insurance policies out there, including relevant life insurance. So what is it? And should you consider it for your business? Let’s take a look.
What is Relevant Life Insurance?
Relevant Life insurance (RLI) is a type of life insurance that businesses can take out to cover employees. It’s a way for employers to offer employees free life insurance. If you’re a business owner, providing your employees with relevant life insurance can make them feel valued. Plus, it’s tax-efficient.
How Does Relevant Life Insurance Work?
A relevant life policy is an individual life insurance policy that’s taken out by a business on the life of an employee. The business is the policy holder, and the employee is the life insured. The business pays the premiums, and the death benefit is paid to the beneficiaries named by the employee.
Relevant life insurance can be used to cover key employees, or it can be offered as a benefit to all employees. If you’re considering relevant life insurance for your business, it’s a good idea to speak with an insurance broker. They can help you understand the details and find the right policy for your needs.
Who Should Buy Relevant Life Insurance?
If you’re a business owner, you may want to consider relevant life insurance for your employees. It’s especially beneficial for small businesses that can’t afford to provide group life insurance.
With relevant life insurance, you can choose how much coverage to provide employees. You can also tailor the policy to fit your budget and business needs.
Relevant life insurance is also a great way to attract and retain top talent. By offering relevant life insurance, you can show your employees that you value their well-being.
If you’re thinking about relevant life insurance for your business, be sure to speak with an insurance broker. They can help you understand the details and find the right policy for your needs.
What Are the Benefits of Relevant Life Insurance?
There are several benefits of relevant life insurance for both employers and employees:
It’s tax-efficient
The premiums are paid with pre-tax dollars, and the death benefit is tax-free.
It’s affordable
Premiums are typically lower than group life insurance rates. If you’re a small business owner, this can be a great way to provide your employees with life insurance coverage without breaking the bank.
It’s portable
If an employee leaves the company, they can take the policy with them. This can be a great benefit for employees, as it ensures they’re never without life insurance coverage.
It’s flexible
You can tailor the coverage to meet the needs of your business and your employees. You can choose the death benefit amount, the premium payment frequency, and more.
It’s easy to set up
You can usually set up a relevant life insurance policy quickly and easily.
It builds cash value
Some relevant life insurance policies build cash value that can be used in retirement. Not all relevant life insurance policies have this feature, so be sure to ask about it when you’re shopping around.
Makes staff feel valued
Employees feel appreciated and valued when their employer offers them relevant life insurance. This can lead to increased morale and loyalty.
How Much Does Relevant Life Insurance Cost?
The cost of relevant life insurance varies depending on factors like the age and health of the employee, their smoking status, and the death benefit amount. Generally speaking, premiums are lower than group life insurance rates.
Is Relevant Life Insurance Right for You?
If you’re a business owner, relevant life insurance can be a valuable benefit to offer your employees. It’s affordable and tax-efficient, and it can help you attract and retain top talent.
Where to Buy Relevant Life Insurance
If you’re interested in purchasing relevant life insurance, the best place to start is by talking to your insurance agent. They can help you compare policies and find the right coverage for your business.
How to Apply for Coverage
Applying for relevant life insurance is similar to applying for any other type of life insurance. You’ll need to complete an application and undergo a medical exam. Once you’re approved, you’ll pay your first premium and your coverage will begin.