Company-owned life insurance coverage insurance policies, typically referred to utilizing a controversial time period, contain an organization buying life insurance coverage on its staff. The company is the beneficiary and pays the premiums. Upon the worker’s loss of life, the company receives the loss of life profit. This kind of insurance coverage just isn’t distinctive to any single retailer and is utilized throughout varied industries. A big retail group, for example, may use this to offset prices related to worker turnover or to fund worker profit applications.
The perceived advantages of this apply embody monetary safety for the corporate within the occasion of an worker’s sudden loss of life. The loss of life profit can be utilized to cowl prices like recruitment, coaching of replacements, or to mitigate any monetary disruption attributable to the lack of a key worker. Traditionally, these insurance policies had been carried out as a means for corporations to recoup investments in worker coaching and improvement and to make sure enterprise continuity.
