|
| [November 10, 2004] |
 |
Life Insurance Benefit Lets Consumers Invest for Long Term; Portability and Options Provide Affordable, Simple, Flexible Financial Tool
ST. PAUL, Minn. --(Business Wire)-- Nov. 10, 2004 -- Study after study shows most Americans are not financially secure. Employers can help their employees manage their finances better and provide them with permanent life insurance by offering group universal life insurance as an employee benefit.
Baby boomers nearing retirement are a source of critical concern because only one third of all baby boomers have planned for retirement, even though many of them realize they will outlive their savings. But studies show average retirement savings among baby boomer households is only $55,000 to $65,000. And younger generations, despite having retirement opportunities such as the 401(k) plan, aren't doing much better than their parents in working toward financial security.
Life insurance is the most fundamental element of a financial plan because it replaces income lost with the death of a breadwinner. Yet less than two-thirds of adult Americans own life insurance, and most of them rely on the group life insurance they receive as an employee benefit. Unfortunately, most group life policies are not portable. That means the coverage goes away when the employee leaves the company.
With group universal life insurance (GUL) offered by Securian Financial Group and Minnesota Life, employers can help employees achieve financial security by providing permanent portable life insurance that protects the family from loss of income. Group universal life also includes a cash account that employees can use to accumulate funds for retirement, a down payment on a home, college savings, or any other long-term expense.
GUL also offers tax advantages. As with all life insurance policies, the death benefit passes income tax-free to the beneficiary. Also, the post-tax dollars deposited in the GUL cash account grow tax-deferred, meaning the owner pays tax on earnings only at the time of withdrawal. Withdrawals can be taken from GUL at any time but will reduce the death benefit and the cash value of the policy by the amount withdrawn. Withdrawals in excess of earnings are considered loans and interest is charged until they are repaid.
"Baby boomers wanting to build retirement nest eggs can use GUL to grow an additional pool of assets," said Ed Eller, national sales manager, Minnesota Life. "But employees of all ages find it useful for saving for other needs. And the life insurance is always there to provide long-term financial protection."
Some GUL plans use web-based technology that allows employees to go online at their convenience and change life insurance coverage levels, beneficiaries or, in the case of variable GUL, move money among investment options. As an added service, Securian's Minnesota Life product offers instant messaging so employees can ask for help while they are online.
"Employees are familiar with web-based benefits and we make it easy for them to enroll and manage their insurance coverage," said Eller. "GUL helps people get more out of life by giving them the security of life insurance for tomorrow, and the flexibility to build cash value for their needs today."
The consumer benefits of group universal life insurance are:
-- Group rates make it affordable.
-- The protection is portable, staying with the consumer even if s/he leaves the company or retires.
-- It is a simple product that is easy to use.
-- Employees can use GUL to save money for health care, retirement, college, a down payment on a home, remodeling, a car, or any other long-term expense.
-- Life insurance premiums and cash contributions can be made via payroll deduction.
-- Employees own and manage the policy with web-based technology that is secure and easy to use.
-- Life insurance coverage provides long-term financial protection.
-- Variable GUL offers investment options that consumers can select much as they do in their web-based 401(k) plans.
Minnesota Life, a subsidiary of Securian Financial Group, is the nation's seventh largest group life insurer, with more than $300 billion in group life insurance in force and paying nearly $600 million in group life and accelerated benefits claims annually as of 12/31/03. Minnesota Life has provided customized group life insurance programs to government, business, and associations for more than 80 years. It is highly rated by the major independent rating agencies that analyze the financial soundness and claims-paying ability of insurance companies.
Variable products are distributed by Securian Financial Services, Inc., Securities Dealer, member NASD/SIPC, 400 Robert Street North, St. Paul, MN 55101-2098. You should consider the investment objectives, risks, charges and expenses of a variable insurance product carefully before investing. The variable insurance product prospectus contains this and other information. You may obtain a copy of the prospectus by calling 1-800-606-5433. Please read the prospectus carefully before investing.
Group universal life is offered under policy form series 00-30252 or 01-30287T and variable group universal life is offered under policy form series MHC-94-18660, Rev. 5-2001 or MHC-96-18710T, Rev. 5-2201 or a state variation thereof.
[ Back To Smart Product Home's Homepage ]
|