Life insurance protects the loved ones left behind by an employee’s death. Just like a long term disability, the loss of income associated with the death of a bread winner can be catastrophic. Insurance seeks to eliminate the ‘peril’ behind the unexpected. Employers have been providing coverage on employees’ lives for many decades. If a valued employee dies, her/his family will be provided a benefit, allowing them to make a difficult transition without undue financial hardship.
Usually a base amount of coverage is provided by the employer with additional coverage available at the employee’s choosing.