People are always looking for ways to achieve a more financially secure future for their family. Your employer is offering a benefit that can assist you with that goal: life insurance. It helps ensure that your loved ones will be provided for financially when you die. Here are answers to questions you might have about this important benefit.
Why should I buy life insurance at work?
It gives you a simple, flexible way to purchase life insurance.
How much life insurance do I need?
Because each person’s situation is unique, there is no set answer to that question. You can, however, get a good snapshot of your life insurance needs by using a simple online tool, the Life Insurance Needs Calculator, which is available through the nonprofit LIFE Foundation at www.lifehappens.org/lifecalculator.
How much will it cost?
The answer depends on the amount of coverage you choose, but buying through your workplace has several advantages. You can apply for life insurance coverage for a few dollars per week on yourself, your spouse, children and grandchildren. In addition, it is a convenient way to buy, as the premium can be deducted from your paycheck.
Will I have to take a medical exam?
A big advantage of buying a policy through your employer is that you often don’t have to show evidence of insurability when applying for coverage, especially smaller amounts of coverage. If you’d like to purchase higher amounts, you may have to answer some health-related questions, but generally not as many as if you were to buy an individual policy outside of work.
What happens to my coverage if I leave?
The type of life insurance policy that your employer offers is an individual policy, which is similar to what you would buy on your own outside of work. One of the best things about an individual policy is that you can take it with you at no additional cost if you leave your job. You would then be responsible for paying the premiums directly to the insurance company.
Is the life insurance coverage I get through work enough?
It’s smart to take advantage of this important benefit that your employer is offering, as it can serve as the foundation of a life insurance plan to protect your loved ones. Ask your benefits manager about what your purchase options are. If you find you need more coverage than is available through your employer, an insurance professional in your community can help you get the additional coverage you need.
