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What Kinds of Life Insurance Can I Get At Work in the United States?

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Knowing the different kinds of life insurance suitable for employees at work is not an easy task. Through the workplace insurance plan, you might want to get term life insurance or permanent life insurance policies.

Why do you need life insurance as an employee?

The death of a breadwinner in a family is not only emotionally energy-draining but can also have a serious impact on the financial future of the entire family, especially if they have dependents like children, aged parents, and a spouse who’s not financially stable.

From feeding the family that is left behind to paying the mortgage, even down to taking care of college education, your life insurance policy as an employee plays a vital role.

The very essence of life insurance employees crave is to ensure their loved ones are taken care of financially after their demise.

When you purchase a life insurance policy in the United States through your place of work, your insurance provider is obligated by federal and state laws to pay those who depend on you a sum of money upon your death.

In return for the death benefits payable to your dependents, you are expected to pay what we call, life insurance premiums.

Some of the factors that determine your life insurance premiums are age, gender, medical history, and the life insurance package you choose to opt for.


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Here’s a breakdown of everything your life insurance company in the U.S. pays to your beneficiaries as an employee on your demise.

  • Replacing lost income
  • Covering basic living expenses
  • Paying household debts, estate taxes and funeral expenses
  • Funding a child’s education
  • Supplementing retirement savings

We can as well say that these points above are some of the key reasons why you need a life insurance policy. From your workplace, you can purchase any of these two main types of life insurance – term life insurance and permanent life insurance.

What is term life insurance and why is it important as an employee?

Permanent life is a kind of life insurance you can get at work

Term life insurance or term assurance is a type of life insurance that provides coverage at a fixed rate of payments for a limited period of time. Your insurer is obligated to pay your beneficiary a certain cash sum if you die during the time your policy runs.

Before purchasing term assurance, it’s ideal that you find out how your career affects your premium

The death benefits that come from term life insurance usually run from one to 20 years. One of the disadvantages of term life insurance is that when you stop paying the premiums, the insurance stops. But the cool fact about this type of life insurance is that they may also give you the option to port. That is, you can take the coverage with you if you leave your company.

Here are some of the important benefits getting term life insurance in your workplace will offer you:

  • As an employee, you get valuable coverage at an affordable price in your workplace. A perfect example is the one we explained in this USAA Review
  • Term assurance helps you cover specific financial responsibilities like a mortgage or college expenses
  • The term life insurance policy you get at work can supplement a permanent policy

Before settling for any insurer, it’s important you compare term life insurance quotes online or through telephone to be sure you are getting the best deal that your budget can afford even if you have a bad driving record or credit score..

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How does the permanent life insurance policy you get in your workplace work?

Permanent life insurance is also known as whole life insurance. 

The difference between term life insurance and permanent life insurance is that while term life is only for a limited period of time, permanent life insurance policies do not expire. They are intended to protect your loved ones permanently, as long as you pay your premiums. 

Some permanent life insurance policies accumulate cash value. That means the value of the policy will grow each year, tax-deferred until it matches the face value of the policy. The cash can generally be accessed via loans or withdrawals and can be used for a variety of purposes. This type of plan is typically portable so coverage can continue if employment terminates.

The benefits of permanent life insurance are enormous.

Here are the key factors employees must consider before getting a permanent insurance policy:

  • Go ahead and get whole life insurance if you want protection for life
  • If payments stay the same each year, you can proceed to getting permanent life insurance in your workplace
  • If you want to get cash value if you can using while you are living
  • To put additional money into the policy on a tax-favored basis

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