Chapter 13: Employee Benefits & Fringe Benefits

01.Core Concepts

• Pure insurance protection (no cash value) • Death benefit may be a multiple of salary or a set dollar amount. • Protection ceases at end of term unless renewed (usually every year). Impact on Retirement Planning • As retirement nears, evaluate whether the policy is still needed to fulfill retirement and legacy goals. • At separation from service, policy may be converted to a permanent policy without evidence of insurability. • Conversion governed by state law, but typically must be completed within 31 days from separation from service. • If insurable, evaluate cost of obtaining a new policy.