Salary Savings Insurance
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.