3 Things To Ask When Considering Group Term Life Insurance
Maybe buying life insurance has been high on your list, but you just haven’t gotten around to it. Or perhaps you have only recently started a family and begun thinking about your finances and future. Whatever the circumstances, it is very likely that when you do decide to start giving some though to life insurnace, you will go through your job. Group term life insurance rates are typically much better than anything you could get o your own, making them a highly attractive option. What else makes group term life insurance a good – or bad – choice for your lifestyle? Turns out there are many different factors. Here are a few things to think aboutwhen considering whether group term life insurance is right for you.
How Much of Your Income is Insured?
Coverage offered through group term life insurance rates with your employer can vary widely depending on everything from the agency they partner with to your place in the organization hierarchy. For instance the benefits offerd to the CEO may be vastly different from those offered to facilities maintainence. Asyou consider whether roup term life insurance is for you, make sure you review the group term plan document so you understand what amount and kinds of compensation are actually covered. In some cases, the plan may only cover your base salary.
What’s The Premium Cost
Group term life insurance rates are often negotiated ina way that makes premiums vary based on individual specifics. Those are typically cenetered on age and number of dependents. That means while group coveage can be cheap when you are young, rates may start to creep up quickly as you age, since younger participants in a group plan may not be required to go through underwriting. In a group plan, with premiums based on a pool of employees of various ages, rates may nonetheless go up at age 30, 40, 50 and on. When considering group term life, learn more about premium increases so you can plan your budget accordingly.
Portability of Coverage
One of the drawbacks of group term life insurance tied to your job is that it may only be available when you have that job. That’s not qute the quaranteed assumption it was back in your grandfather’s day. Nowadays everything from the economy to simply shifting technologies can lead to a job shift. Since group term life insurance rates are linked linked to your ongoing employment, the coverage typically ends once your employement ends. While some insurers are will to conver the group term to an individual permanent polic, it’s not something you can depend on. You coul even be rated and offered a policy with a much higher premium.
Group lterm life insurance rates are among the best that you can find, allowing individuals to benefit fro the price breaks offered to a larger group. But first you have to make sure group term life insurance meets your family, monetary and lifestyle needs. THink about some of the above factors as you’re making your choice and you will end up with the perfect insurance every time.