Salary Shield is a new Income Benefit Term Life Insurance Policy from TIAA

Salary Shield pays beneficiaries a monthly income benefit ranging from $1,000 - $7,000, and can make a one-time lump-sum additional benefit payment of up to $100,000 to cover costs such as funeral expenses or a mortgage. The policy design removes the burden from the beneficiary of trying to manage a lump-sum death benefit payment.

The policy will help replace income for up to 30 years or until the insured turns Age 65, whichever comes first. The policy guarantees that beneficiaries will never receive less than 5 years of payment. The policy quoting, application, underwriting, payment and policy delivery is all done on-line. Premium payments can be made by credit card, debit card or electronic fund transfer.

According to TIAA, a small portion of the monthly income benefit that is attributable to interest may be taxable. The one-time additional benefit payment is generally income tax free according to IRC Section 101(a). Consumers should consult their tax advisor.

TIAA is the second company to recently launch an income benefit term policy in recent months. Allstate launched its Monthly Income Term policy in September 2018.