Term life insurance is one of the least expensive employee benefits available to Vermont employers. This coverage can provide piece of mind to the business owner knowing that the family of a deceased employee has some financial security should an untimely death occur. For many employees, the company-sponsored plan may be their only life insurance coverage, especially for employees who may be disqualified from purchasing an individual policy due to a medical condition.

At Benefit Design & Strategies, we can inform you of the advantages of introducing a group policy or evaluate your in-force policy(ies) to assess the adequacy of the coverage and the degree to which your policy conforms to the latest industry standards. Group life insurance rates have been declining as insurers become more competitive and continue to offer new ancillary benefits with their policies. Benefit Design represents no less than 8 highly-rated life insurance companies.

Usually a group life policy includes an inexpensive accidental death and dismemberment (AD & D) rider that pays an extra death benefit (usually equal to the face amount of term-life coverage) should death result from an accident. In the event of an injury resulting in the loss of sight, hearing or limb, the AD & D rider pays a lesser amount to the insured based on the severity of the loss.

To be more competitive, the insurance industry has added features such as:

• Accelerated Benefit - Offered to an insured employee diagnosed to live less than 6 or 9 months, this feature enables the insured to tap into the face amount of the life policy while still living to use for any purpose. Amounts withdrawn are deducted from the ultimate death proceeds.
• Higher Education Benefit - Provides funds for higher education expenses if a child or children are at or near college-age at the time of the employee-parent's demise.
• Repatriation Benefit - Pays a fixed dollar amount to prepare and transport an employee's body back to his/her home town if death occurred away from home. The trip's purpose is immaterial.
• Seat Belt and Airbag Benefit - Pays an additional amount in excess of the basic life and AD &D benefit should an employee be killed in an car accident while driving or as a passenger in which he/she was properly belted and/or the vehicle was equipped with functioning airbags that deployed.