Protecting your loved ones from financial hardship should something happen to you is the purpose behindlife insurance.
Many companies make it easy for their employees to have some coverage by including it as a benefit.
Chances are, its worth about one to two times your salary and costs you nothing.
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Its usually not enough.
But the supplemental coverage might not be as good as it seems.
Knowing what youre really signing up for could save you money and ensure youre covered.
What is Supplemental Life Insurance?
The employer is the policyholder and gets discounted rates because they are insuring their entire organization.
No Interest Til Almost 2027?
The policies typically are guaranteed issue, meaning there is no health exam and you cant be turned down.
You choose the beneficiary, but not much else.
There is very little underwriting that goes on here.
You basically sign up, pay the premium, and youre covered.
Many groups like auto clubs, alumni organizations and veterans groups offer supplemental life insurance policies to members.
Anyone who is a member can purchase the policy.
Supplemental life insurance policies that are based on your employer are usually not portable.
So if you leave the job, you leave the insurance policy.
Who Should Get Supplemental Life Insurance?
And the great majority of those [people] can buy it preferred rates.
Portability is also a major reason not to opt for coverage through your employer.
Balance the cost of the supplemental insurance plan against the death benefit it will provide.
If (your job is) the only place you might get life insurance, okay fine.
But it certainly isnt the first place I want people to go, Weisbart says.
She likes to save money so she can travel more.
It sounds appealing right?
Check it out here!
