Financial Stability Pyramid

Are you spending your money in the right way to create financial stability with your employee benefits?

Most employers and employees build their financial pyramid based on their likelihood to use a particular insurance coverage. This makes sense until you look at the instability of doing it that way. For instance, dental insurance is the second most popular benefit, but the financial consequences of having to pay for two cleanings per year is significantly less than the impact of not receiving any income for six to nine months due to a long-term disability.

Left is a graphic of how most employers/employees build the financial stability pyramid. The size of the pieces depicts the potential level of financial consequence if you don't have coverage. Building the financial pyramid how many have in the past may lead to high volatility. The slightest event could create instability and cause long-term financial effects.

How Should you Build Your Pyramid?

Your employee benefits - financial pyramid should be built with a stable foundation and then build up from there based on risk. Click on each coverage to learn why it fits there in the pyramid.

This section provides a general overview. The pyramid design examples are for illustrative purposes only.
Always consider specific group needs and particular purchaser when selecting types of insurance.
Current Pyramid Source: A Walk on Thin Ice, Limra. 2005.