Multi-Life Insurance Products for Fringe Benefits

Multi-Life Protection Plans

Stay Up to Date with Multi-Life Products

Multi-life protection products provide companies with the opportunity to offer additional fringe benefits to their employees. There are a variety of product designs available including both voluntary and non-voluntary offerings.

  • Multilife long-term care insurance is simply an individual long-term care insurance product offering to employees and their eligible family members with a premium discount and usually simplified underwriting (SI) which means limited health questions or modified guaranteed issue (MGI) which means even fewer health questions.
  • Focus 10 Life is an individual, simplified-issue term life insurance policy to help employers provide an individual term life insurance benefit to employees without the hassle and uncertainty of medical underwriting. The program is an employer paid non-voluntary plan for white collar employees. Policies are fully portable and convertible and employees may name their own beneficiary.
  • Corporate owned life insurance (COLI) is life insurance purchased by a corporation for its own use. The company purchases and owns a life insurance policy on a key employee and is the primary beneficiary. The purpose is to insure against the death of one or more key employees.
  • Non-qualified deferred compensation plan (NQDC) is an arrangement between an employer and selected key employees to defer a portion of their compensation to a future tax year allowing the employee to lower their current year income tax liability. This vehicle provides an opportunity for the employee to save more for retirement on a tax deferred basis.

Key Considerations for Life Policies

Investigate all possible exit strategies for unneeded, unwanted or underperforming life policies at risk of lapsing or surrendering.

  • Identify the class of employees that are to be covered by the benefit.
  • Determine the desired tax treatment to employer and employee and structure the plan accordingly.
  • Consider how these plans can be stacked on top of group benefits to provide additional incentives to key employees. Treat your life insurance policy as an asset and recognize that it can provide financial resources in retirement.

How CBIZ Life Insurance Solutions Can Help Implement Multi-Life Plans?

CBIZ Life Insurance Solutions has developed a first in class network of providers to design and implement multi-life plans. We can start with an exploratory discussion to identify the employer’s objectives and deliver recommendations and plan design options.