Optional Life Insurance
Optional Life Insurance is a benefit offered through some group plans by which employees can, if they choose, purchase life insurance over-and-above the insurance provided through their group plan. It is an attractive benefit to both employers and employees alike - to employers because it allows them to control rising benefits costs, and to employees because it provides them the ability to customize life insurance coverage to their individual needs. Optional Life Insurance is typically available in units of $10,000 to a maximum amount of usually $200,000 or more (maximum amounts vary among insurance carriers and group plans).
Optional Life Insurance has the following features:
- It is available to individual employees
- Proof of health is required with the insurance application
- It is almost always funded by employee contributions
- It is often available to an employee’s spouse and dependent children
Why would you want Optional Life Insurance?
- It is often an inexpensive way to fully meet your life insurance needs.
- If you terminate employment with your current employer prior to the age at which your group Life Insurance automatically terminates, you can convert your coverage to an individual plan without having to provide proof of good health.
If you are interested in learning more about Optional Life Insurance, please contact your plan administrator or Wiegers Financial & Benefits for more details.