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Under a defined contribution plan, the employer makes set contributions to individual accounts for each plan participant.

Life insurance benefits provide a monetary benefit for the insured and/or the insured's beneficiaries in the event of the insured's death.

The benefits usually are paid in a lump sum or, occasionally, in the form of an annuity, through which the beneficiary gets periodic benefit payments for life.

Employers sometimes permit employees who leave the work force before reaching the required age or years of service to retire with reduced pension benefits.