Finding out what happens to your group term insurance after you retire is essential when renewing your benefits and determining the best course of action for your insurance plans. Take a look at more helpful tips for figuring out your group life insurance below from Mike Smith at CPS Horizon Financial.
For more information on how WFA can help you determine how much life insurance is needed, call us today at 414-727-8181.
5 Group Life Insurance Tips
#1: Many employers will pay for $50,000 of group term life insurance. Check the beneficiary to assure proceeds go to whom you choose and not an ex-spouse or someone you don’t intent to have as beneficiary.
#2: If you have the opportunity to purchase additional self-coverage through payroll deductions, compare the rates to the open market. Oftentimes, supplemental life insurance coverage purchased through work can be more costly than the open market — It’s worth the peek to compare.
#3: Understand “portability” regarding the additional self-coverage. You may be able to continue the supplemental life insurance coverage after you terminate employment.
#4: Some employers may allow you to purchase limited coverage for your spouse and dependents — Just because you can, doesn’t mean you should. Work with your financial adviser to determine whether insurance is needed, and then compare the rates to private insurance policies.
#5: Find out what happens to your group term insurance after you retire. Sometimes there will be a small, paid up policy that is enough to cover final expenses (perhaps $10,000 or so).