Life Insurance for Your Employees That Doesn't Break the Bank
October 1, 2018
When discussing the risk management portion of our clients’ plan, we get told all the time, “I have coverage through work, I don’t need life insurance.” Our response is simple. “That’s awesome!” Companies normally offer 3-5 times your annual salary, and more can be purchased for additional premium. However, that is the company’s plan and not your own customized plan. While reviewing your options for group coverage, there are always three critical details you should consider.
Longevity of group coverage
With Group Life we find it common for employees to not fully understand what plan they have, but that’s ok because your advisor will help explain and guide you through your plan. Longevity is important because you may need your life insurance to last your entire life. You also want to make sure that your life insurance provides the different levels of protection that you will need throughout your life.
Portability of group coverage
Coverage may not be portable to take with you if you leave, retire, are terminated, become a certain age, sale of company, or bankruptcy. These are events you have to consider. Having “your plan” eliminates all of these concerns; you’re in control and have the flexibility to adjust it as needed. Consider this, a 25 year old males elect to take group coverage. Five years down the road he gets an offer for a job and leaves. His group life is likely gone and would definitely cost more because he’s now older. Also, he has developed a speeding habit and has had a few traffic tickets. These situations happen often and lead to not qualifying for new group coverage. Thanks “group coverage,” yet another reason to have “your plan” to have your back.
Stability in price
Consumers always want the best price and we totally understand! The three most commonly offered group life insurance products are Term Life, Universal Whole Life and Whole Life. Group Term is like renting an apartment - it’s more affordable and you only have it for a certain period of time. Group Universal Life is compared to Term and Whole Life combined together. Make sure you understand the cost of insurance changes annually - interest rates will affect the policy cash value and the overall flexibility associated with this policy. Group whole life is the most stable in pricing and costs more normally. Consider this the Cadillac of plans, lock in your current cost, have lifetime coverage and grow cash value in the policy while deferring taxes.
By providing access to Group Life, your company will:
· Provide a helpful service to employees with minimal effort
· Offer group rates starting with two employees
· Have no out-of-pocket employer costs because the program is funded entirely by employee contributions
· Have no government reports to file
· Have no hassles with questions – billing questions are directed to our Western & Southern Life toll-free phone number for quick resolution
By Reid Shockley, NSSA
Financial Representative at Western & Southern Life Insurance
Qualifying Member of the Million Dollar Round Table
To learn more about Western & Southern Life, visit www.westernsouthern.com