Tuesday, August 7, 2007

Severance Insurance

How could severance insurance benefit the displaced worker?
  • It could guarantee the severance benefit to the displaced worker
  • It could provide a stronger guarantee than the company could provide
  • It could smooth out the severance benefit, i.e., no lump sum payment but payments made on a pay period basis
  • It could extend the benefit period
  • It could provide a tax advantage to the benefits
  • It could help access "working fringe benefits"
  • It could provide ancillary benefits, e.g., "service severance"



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