Once a year most companies that provide group benefits have a period called “Open Enrollment. “ This is a brief time when you can change your benefit options with limited medical underwriting.
For example if you previously elected not to have Group Long Term Disability Insurance you now have another chance to choose that benefit with limited medical questions. You may also be able to purchase some additional supplemental life insurance with few medical questions.
Spencer Insurance wants to help you during this “Open Enrollment” period. We specialize in life, disability and long term care insurance. Contact us when you get your “Open Enrollment Package.”
Many people tell us they are paying a small amount for their supplemental life insurance. Your company may provide free life insurance up to one times your salary and the employee can purchase another three to six times that salary. The premium may seem inexpensive however why should you consider getting that coverage outside your employment? Here are three reasons you should consider:
- If you lose your job or decide to switch jobs you may lose that coverage. Many times the coverage is not transferable. This could be a problem if you now have health problems you did not have when you first decided on the supplemental life insurance with your employer. If you had gotten a life insurance policy on your own with a premium guarantee of 30 years then you could switch jobs knowing the lack of life insurance at the new employer is not a deal breaker.
- An employer can decide to eliminate the plan, change the plan or change carriers. In addition the rates are typically set in five year bands (30 to 34, 34 to 39, 40 to 45 etc.). This means as you get older that premium will increase. An alternative is to purchase a life insurance policy with a 30 year rate guarantee outside of your employer.
- The group rates may be the same for all employees. This means an unhealthy employee who smokes may get the same rate as you. If you purchased a life insurance policy outside your employer then you may qualify for the best non-smoker rates.
In addition you need to be careful with your Group Long Term Disability Insurance. The employer may say its group policy will pay you 60% of your income should you be disabled. However your plan may only cover your salary and not any bonuses. Most plans have a cap so the plan may only pay 60% of your income up to a maximum income of $5,000 per month. If you earn more than $60,000 per year you may not be getting 60%. Check out my article – When is 60% only 30%. You may need some supplemental long term disability insurance.
Let us review your “Open Enrollment Package” today to be certain you are getting the best long term rates. Don’t hesitate to contact us as the “Open Enrollment” window only last a couple weeks.
