Group Life Insurance
Group life insurance is a great way to provide exceptional coverage for your employees. In fact, in the far majority of cases where individuals have life insurance coverage from their company, they are part of a group life insurance plan. These plans give the full amount of coverage necessary for employees to cover any potential funeral expenses in addition to providing for their family and loved ones.
Life Insurance Matters
There’s no question that life insurance matters as it can provide months or even years of income to your beneficiaries (whether family, friends, or other loved ones) at an affordable rate to you during the life of the policy. This is in addition to providing the full level of expenses that will be necessary to cover the average funeral expenses.
Life insurance is incredibly useful and a critical part of any coverage plan. The most important part to understand about these plans is that they provide actual cash for your beneficiaries who get to choose how to spend it however they see fit.
That means they can use these payments for:
- Maintaining their current standard of living you’ve provided for them
- To pay off any household debt that might be hanging over their heads
- Help to secure your children’s education
- Help to supplement retirement savings for your spouse
What Type of Insurance Coverage Do You Need?
When it comes right down to it, life insurance will basically come in one of two styles:
- Term Life Insurance
- Permanent Life Insurance
Term life insurance is the right plan for individuals who want life insurance coverage for a set period of time. Generally this is taken with a specific timeline in mind, one where the person will still have enough time to meet the responsibilities of the people who depend on them. This is a good policy for people feeling an urgent need to get their affairs in order, or who may feel there’s a particular time in life where they are especially vulnerable or in trouble.
On the other hand if you want a lot more flexibility and lifetime coverage that isn’t going to “just expire” after a certain amount of time, then permanent life insurance policies make a lot more sense. Not only is the coverage permanent with this style (as long as payments are made) but many of these particular policies allow individuals to borrow from an accumulated cash value – giving additional flexibility for when people need it most.
Additional Insurance Protection
Sometimes you just need a little bit more protection. The most commonly used term for this type of supplemental insurance is “Accidental Death & Dismemberment.” While this certainly isn’t the type of injury or accident that you want to think about, it’s important to have coverage for that worst case scenario.
Hopefully this type of additional insurance coverage is never going to be needed, but it is much better to have it. This type of insurance covers loss of hearing, sight, limbs, speech, or even life. Paralysis and many over serious long term injuries are also covered under this type of coverage which makes it an important compliment to conventional life insurance coverage.
Basic & Supplemental Term Life Insurance
Term life generally offers both basic and supplemental options. Depending on the policy being looked at you might be able to get coverage for your dependents, as well, offering that extra level of flexibility to help the family be covered no matter who the insurance has to cover.
Term policies can be changed over time as your specific needs also change, however it is important to note that this flexibility often comes with an additional price, as well. If you know you want constant coverage without having to worry about it again, it might be time to look at your permanent life insurance options, instead.
Supplemental insurance is a plan that adds to coverage already provided from a basic group plan, and gives a wide array of options since any plan you roll out can be added to with a good supplemental plan.
Permanent Life Insurance Options
Permanent life insurance offers a high level of protection for the entire lifetime of the person covered by the policy. Not only does permanent life insurance offer top notch coverage throughout your lifetime, but most policies even have the added ability to build cash value. This can be borrowed against for certain expenses or even lead to supplemental income that can combine with Social Security or a pension for a much better quality of life during retirement.
The two types of plans you should ask our professionals about:
- Group Variable Universal Life (GVUL)
- Group Universal Life (GUL)
Lifetime Coverage Matters
For most people, the idea of life insurance is to have solid and steady support over a lifetime. This is a safety net for their family and loved ones, and depending on the policy there might even be investment and tax advantages involved.
The number of different plans means there are very flexible funding options depending on what you need, and the costs are going to vary based on the coverage amount, the policy, and the type of policy being taken out. Permanent life insurance policies, for example, tend to be more expensive than term life.
Supplemental polices can be more or less expensive depending on how much is being taken out and what the main purpose is for that additional coverage.