Salary Savings Insurance

Published: | Updated: December 2, 2017

Definition - What does Salary Savings Insurance mean?

Salary savings insurance is a type of life insurance in which an employer takes part of an employee's salary and uses it to pay for that employee's life insurance premiums. In other words, salary savings insurance involves an employer helping an employee get life insurance by using a cut of their pay to fund the policy.

Insuranceopedia explains Salary Savings Insurance

Salary savings insurance is more convenient for employees. They do not have to go through the process of paying premiums themselves; instead, their employer handles it for them. Yes, the money still comes out of the employee's earnings, but it is still a simpler way to get life insurance than many other options. Employers can offer this type of life insurance as a benefit to entice prospective employees to join the company.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

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