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If your company or employer offers a free life insurance application, please accept it without hesitation.Buying group life insurance through an employer is very beneficial, and the principle of small profits but quick turnover for group customers applies everywhere.The most important thing is that even if you have some health problems, group life insurance is more likely to be covered, and the premiums and prices given may be more favorable.
But if you consider buying or paying extra for such employer-providedLife insuranceIf you do, you must know the details of the life insurance contract provided by the employer and the insurance company in advance.These contracts determine the types of insurance, various types ofRider additional termsAnd other issues.
The contents of insurance products provided by different insurance companies are usually different.If your conditions are suitable, or there are more needs, the employer's life insurance plan may not have an advantage in price, or the type of insurance may not suit your actual needs.
Here are the 5 main questions you need to know about employer life insurance plans:
What kind of life insurance is this
The most common types of free life insurance provided by employers areTerm, term life insurance.This type of insurance is the cheapest and usually provides the most basic accidental death compensation.When applying, you need to pay attention to which insurance company is the employer sponsored insurance product, and what Riders (additional terms) are available to choose from?Can I buy some at my own expense?Rider, Add spouse and children to the protection?And, is there any provision for upgrading to whole life insurance?
If the employer also provides a lifetime typeLife insurance, Such as universal insurance, savings insurance, etc.This situation is relatively rare, and is usually designed for additional benefits provided by management or specific company conditions.This type of insurance has a cash value function, similar to a 401(K) account managed by an insurance company, which can be compared to a "tax-free retirement plan".This type of life insurance is much more complicated and more expensive than Term and term life insurance.Make sure you fully understand the type and brand of life insurance your employer chooses, and how this product works.Preparing a targeted insurance strategy plan in advance will be very helpful to maximize the value of the insurance policy.
How much coverage do I need?
The insurance coverage provided by the company and employers free of charge, usually only1 to 2 times the annual income.
If you are the main source of income for the family, or someone who depends on your income, this insurance coverage may not be enough when sending accidents.When you are ill or suffer a major injury and need money urgently, medical insurance may cover most of the cost of treatment, but during your incapacity, how to pay for the living care expenses and how to pay for the living expenses of the family members who depend on you , How to pay the housing loan at this time?If you pass away unfortunately, how many years of living expenses do you want to leave for your family?
Life insurance types of different types of insurance provide protection schemes against these accidents, but first, you need to carefully calculate the accounts based on these problems.our"How much coverage do you needIn the article, a quick calculation method is provided to evaluate the insured amount, and an additionalGadgetTo evaluate.
What is the upper limit of the insured amount of company insurance?
Life insurance provided by employers free of charge, usually with aBack cover.Because it is related to the cost of the employer.The maximum insured amount of this type of group term life insurance is usually 8-10 times the employee's annual income before tax. If the employer's free insurance value provides twice to three times the amount of insurance before tax, the employee can pay extra Money pushes the insured amount to the upper limit.Compare the "How much coverage do I need" in the previous section to see if this upper limit meets your actual needs.
How much will I spend?
If you just accept the free plan provided by the employer, then youDon't need to spend any money.The advantage of buying group insurance through your employer is that you are more likely to be covered by the insurance company.
If you are healthy, the cost of purchasing life insurance outside the company may be lower.At present, the channels for buying Term through the Internet, term life insurance are very smooth, and the price is usually cheaper than you think.Many consumers in their 30s think that buying a term life insurance with a coverage of $300,000 may cost seven to eight hundred a year, but in fact, the average price in the market is indeed less than $200.
If you want to hold it for a long time, you usually need to confirm with your employer whether this term, the premium of term life insurance, will increase with your age?Because in addition to the plans provided by employers, there are also term life insurance products with constant premiums on the market.
What options are available when leaving a job?
Before applying, you need to ask how to deal with life insurance issues when you leave your job.Is it simple and rude to directly terminate the policy contract?Or can this group policy be converted into a separate individual policy?If it can be converted to an individual insurance policy, you need to ask whether the premium will change and whether you need to re-examine.Will the insured amount decrease with age? Which Rider and additional clauses can play a role and help in this situation.all these areAmerican Life InsuranceGuidance Network’s recommendations.
Maybe after resigning, you want to upgrade to whole life insurance, so when you apply, you can ask whether the term life insurance product has "upgrade" additional terms and restrictions.
Summary
In general, when a company or employer opens up life insurance applications, it is also a good time to do a financial health check on yourself.Please bear in mind that age and time costs are far more valuable than some "free" tasteless life insurance policies.Through an inspection of your own life insurance, medical and health insurance, and other family insurances, you can clarify under what circumstances they can be used. Through reasonable insurance configuration, you can achieve the purpose of protecting individuals and families.
Recommended reading:Introduction to American Life Insurance Types Comparison of Advantages and Disadvantages of Each Type of Insurance Price and Premium
