Important Group Life Insurance Considerations
There are two entities that can benefit from group life insurance: Employers and employees. Buying life insurance can be a bit pricey if you're doing it solo, so you may hear a lot of advice saying to go with a group plan from an employer. Employers and labor organizations also get to save money by offering group life insurance to their workers because of their tax benefits.
Is group life insurance sufficient? Request information and we can help you decide.
There are some other important group life insurance considerations to think about, such as what type of policy you would take out and whether or not you need to place your dependents on the policy. With many group life insurance plans, you may also have the option of picking term life and whole life insurance.
Differences between term and permanent group life insurance
If you are looking to obtain coverage for a certain period of time (e.g. to secure your financial obligations on a mortgage), then you can purchase term life insurance. With this policy, you can choose 5, 10, 15, 20 and sometimes 30-year terms. With whole life insurance (commonly known as permanent life insurance), you are guaranteed coverage for the remainder of your life, as long as you are paying the monthly premiums.
More about group life insurance
If you decide to purchase life insurance from an employer, then you will have the option of choosing the beneficiary. You must decide on whether to place your spouse and children or just one or the other.
Choosing the right amount of risk you want to take with your cash value account is also up for debate, including the most commonly asked question: Should I choose fixed or variable life insurance?
- If you would like to have a set interest rate for the duration of your policy, fixed life insurance is the option to go with. This type of policy also has a lower risk profile, meaning your cash value is less likely to fluctuate or fall.
- With a variable life insurance plan, you'll benefit from the higher interest rates that accompany the higher risk of the investments you choose for your cash value account. This means that you have greater potential on the upside, but also greater risk on the downside. Your cash value account may fluctuate -- and even significantly decrease in value.
We can help you choose the perfect plan for your needs. We can also help you assess which risk is appropriate for your life insurance investments and weigh the costs of various plans. All you have to do is request a free, no obligation quote here.