September is Life Insurance Awareness Month.
Soon many employers will have Open Enrollment for their benefit plans. Most employees wait until it is too late to review choices.
If you are currently purchasing life insurance in a Employer Group Plan then pay attention. You may be paying too much! Here is an answer to the question we frequently here from our clients. Plan now as it takes about 4 to 6 weeks for a life insurance policy to be approved. You may not time if you wait until Open Enrollment!
A: Most companies will hold their open enrollment period where an employee can change their group coverage. Many employers offer Group Life Insurance coverage and some of this coverage may be provided free as an employee benefit. Many times you can purchase supplemental coverage and the cost will be deducted from your paycheck. Should I buy this additional coverage? There are pros and cons…
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 that 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 https://spencerinsurance.com/insurance-quotes/life/ 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!”
Check it out before it is too late!