Employee’s whole life
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EMPLOYEE’S WHOLE LIFE INSURANCE Permanent protection with employee’s whole life insurance
Give your workforce another reason to stay at your company. With employee’s whole life insurance, employees have the option to purchase valuable financial protection that can help them to prosper, boost workplace morale, and improve retention.
What employee’s whole life insurance offers
You can give employees convenient access to a range of additional voluntary products, including employee’s whole life, that they can pay for with convenient payroll deductions.
Hassle-free process
A completed application is all that’s usually necessary for approval, with limited or no health questions and no medical exam1
Portable, lifelong coverage
The whole life policy stays with the employee throughout their life, even if they change jobs or retire, and a death benefit is guaranteed for their loved ones as long as they keep up premium payments on the policy
Flexibility plus reliability
Participants can decide how much coverage they want, premiums are guaranteed never to go up, and the policy continues to grow cash value that employees and their families can access for various needs*
Giving employees the option to purchase an individual policy
How employee’s whole life coverage differs from our group term life
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Permanent protection paid for and owned by the employee, so it stays with them even if they change jobs or retire |
An economical choice during your employee’s working years. Offers temporary protection and can be paid by the employer, employee, or a combination of both. |
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Permanent and portable insurance that is not tied to any specific group plan. Since the policy is owned by the employee, they have full protection for the life of the policy. |
Provides valuable death benefit protection while employed. The employer is the policy owner, meaning employee’s may lose coverage if they leave their job or retire. |
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Premiums are locked in at the time of purchase. They will never go up regardless of the insured’s health, age, or the state of the economy. |
Premiums may remain level for a certain period, but they generally increase when the insured reaches a new age group |
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Policy owners are automatically eligible to receive dividends2. The policy builds cash value that is guaranteed3 to grow, tax deferred4, over time. |
The accelerated death benefit option pays a portion of the death benefit if the insured is diagnosed with a terminal illness5 |
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Typically, neither type of policy requires beneficiaries to pay federal income taxes on the death benefits they receive4 |
Typically, neither type of policy requires beneficiaries to pay federal income taxes on the death benefits they receive4 |
Common questions about employee’s whole life
Employee’s whole life insurance is voluntary, permanent coverage that you can offer your employees at no cost to your company. This benefit enables employees to purchase whole life insurance without a medical exam. Unlike group term life, employee’s whole life insurance is portable and stays with the individuals even if they leave your company.
Individual employees pay for this voluntary coverage, so there is virtually no direct cost to your company. Our agents are always available to answer any questions your employees have about rates or coverage.
Yes. If you offer group term life insurance, people at your company could choose to also purchase employee’s whole life insurance for additional protection. If they leave the company, their group term life policies would expire but their employee’s whole life coverage would remain intact as long as they continue to pay premiums.
Individuals can purchase employee’s whole life insurance through convenient payroll deductions or through another arrangement that you make. If the employee leaves your company and wishes to continue the policy, we’ll work with them to set up a new payment method (if applicable).
You can also provide insurance as a group benefit
*Please note that accessing cash value will reduce the available cash surrender value and death benefit.
1With Guaranteed Issue coverage, employees are required to participate for family members to be eligible. Employee participation is not required for Simplified Issue family coverage. Certain requirements must be met to qualify for coverage. Certain requirements must be met to qualify for coverage.
2While dividends are not guaranteed, participating eligible policy owners have received them every year since 1854.
3All guarantees are based on the claims-paying ability of the issuer.
4Neither New York Life nor its agents provide tax or accounting advice. Please consult your tax professionals regarding your particular situation.
New York Life Group Term Life Insurance, Group Short Term Disability and Group Long Term Disability
Insurance as well as Employee’s Whole Life Insurance are issued by New York Life Insurance Company(NY,NY).
New York Life’s Group Long Term Disability Insurance, Group Short Term Disability Insurance, and Group Term Life Insurance with AD&D program may be subject to the Employee Retirement Income Security Act of 1974 (ERISA). You should consult with your tax and legal advisors regarding the applicability of ERISA to this program and your responsibilities, if any, under the program.
New York Life’s Employee’s Whole Life Insurance product and fully underwritten life insurance products are not intended to cause the employer or the products to be subject to ERISA. Employee participation is intended to be completely voluntary. You should consult with your tax and legal advisors regarding the applicability of ERISA to these products. New York Life, its subsidiaries, agents, and employees do not provide legal or tax advice.
These policies have exclusions, limitations and terms under which the policies may be continued in force or discontinued. For costs and complete details of the coverage, please contact your New York Life agent or the company.
In Oregon, the Group Term Life insurance policy form number is ICC16EB-Life-P. The Employee’s Whole Life insurance policy form number is ICC17-217-52P.