To retain employees and reduce turnover, employers may provide benefits such as health insurance, 401(k), and group life insurance. These are all fantastic benefits to have, however, what happens to these benefits if you separate from your employer?
For the purposes of this post, we would like to focus on group life insurance. Generally, the group life insurance provided by your employer may provide you with an amount equal to your annual salary at no cost to you and, more importantly, without a medical examination. If you need a policy larger than the face amount that your annual salary will provide, typically a higher premium will be required and a medical exam may be necessary. Group life insurance is a great benefit since the premiums can be payroll deducted and since it’s possible that you can receive some coverage free of charge. We do believe, however, that employees should carefully consider how much coverage they actually need and weigh their options between the benefits that individual coverage can provide versus what a group life insurance plan offers.
If you leave your place of employment, generally, your life insurance coverage will end unless you are able to convert your group policy to a individual policy. If you don’t know whether or not you can convert your group life insurance to an individual policy, check with your Human Resources department right away.
People purchase life insurance for many different reasons in addition to the policy paying a death benefit. The insured may want to make sure their children’s living and college expenses are provided for if the insured died before their children finished college. Insured’s may also want the death benefit from the life insurance policy to replace their income for several years and allow their spouse or family to continue their standard of living. Other considerations can be, paying off the mortgage on their residence, liens on vehicles, loans, business expenses, and more.
A licensed insurance professional can help you understand the differences between the different types of life insurance policies, features, cost, face amounts and more. You’ll also find that individual policies offer valuable features that Group Life insurance policies do not provide. More importantly, they can also help you determine the proper amount of coverage and offer policies that you can keep with you without being tied to your employer.
Please click here for more information on Group Insurance. Feel free to call The DL Moore Agency at (404) 662-3301 or email us at email@example.com and we will be more than happy to answer your questions.