Summertime is a great time to review your employer’s group benefits.
In October I get a lot of calls from my clients asking me to review their group supplemental life insurance. They have received the packet of employee benefits for the following year and they need to make choices. Typicaly you can add or remove benefits at this time. However, it may be too late. Applying for life insurance may take up to 6 to 8 weeks. By the time you apply for and are approved for life insurance your deadline for your open enrollment may have passed you by. You are stuck for another year. So get a review today.
Here is a summary of the pros and cons of purchasing Supplemental Life Insurance through your employer:
Here are the pros:
- Very convenient as the premium is deducted from your paycheck
- Few medical questions are asked so it is easier to apply
- No blood tests or other lab work is required
- Many times the rates are blended with non-smoker rates making them lower for smokers.
- Many times the rates are unisex which will make male rates less expensive
Here are the cons:
- Group life rates are banded based on rates and typically increase every 5 years.
- Group life rates are blended so if you are a healthy non-smoker you could get the same rate as a chain smoking unhealthy person.
- The amount of life insurance you can purchase is limited and may not be sufficient for your needs.
- You may lose the coverage if you leave the employer
- Rates can increase immediately if the employer chooses a new life insurance company.
What should I do?
Contact us today at 215-885-2200 to review your life insurance needs and the cost of your employer’s life insurance coverage before your next open enrollment. Most open enrollments happen in the fall so this is a great time to review that coverage.
Consider purchasing life insurance on your own for the following reasons:
- You can lock into a rate for up to 30 years. The cost of your employer group coverage changes based on age bands every 5 years. Your coverage may look inexpensive now but what will you be paying in 10 years?
- You won’t lose your life insurance coverage if you get laid off or change jobs.
- If you are a healthy non-smoker you may find less expensive rates.
- You will be able to purchase the amount you need.
Go to our website and click on the Life Insurance Tab for more information and a free report“What you need to know about Life Insurance and How to Make sure the People You Intended to get your Life Insurance Benefits Actually Get the Benefits!”
We have been very successful helping our clients save a lot of money on their life insurance coverage. Contact us today so we have plenty of time to review your choices and see which way is the best for you.