Hello! Quick question on life insurance. My company offers $80k of free life insurance and optional supplemental coverage. Is employer-sponsored supplemental life insurance typically term or whole life? Are these rates competitive, and how can I get quotes without broker calls?
3 Likes
There is no possibility that supplemental insurance provided by employers is permanent given such costs; it is virtually always term insurance. We are unable to determine if it is an addition to the group policy offered by your employer or separate supplemental insurance that you purchase from a business.
Because the business is taking on risks without following underwriting guidelines that weed out those with health concerns and non-medical risks (DUIs, skydiving, rock climbing, etc.), group terms are typically more expensive than properly underwritten.
Though no one here can respond without knowing your age, gender, and smoker status, those costs seem fair.
Group insurance through an employer often has extensive fine print. Consider getting an independent policy that is not tied to your employer.
A group life policy that did not pay out because their mother was on medical leave when she passed away was discussed in a previous post today.
Take advantage of the free offers, but if you are eligible for coverage outside of work, by all means add it to your work coverage. You never know when your employer might alter the benefits it provides or the length of time you will be employed.
Boomers frequently seek to me for life insurance after they retire because they were unaware that they would not be able to keep their employment policy when they retire.
Employer-sponsored supplemental life insurance is typically term life insurance. It’s an additional coverage you can purchase on top of the basic coverage provided by your employer, usually as a multiple of your annual salary.