This article delivers the basics of voluntary life insurance that every employee should know.
Although there are different methods of protecting your family when you are no longer here to do so, there is one way you can plan for the future with voluntary life insurance. This insurance excels at providing critical coverage in various situations that may prevent you from receiving traditional life insurance. This article delivers the basics of voluntary life insurance that every employee should know.
Understanding Voluntary Life Insurance
Many insurance companies offer voluntary life insurance policies with additional benefits and riders. For instance, a plan may feature the option to purchase insurance above the guaranteed issue amount. Depending on the increased amount, policyholders might be required to submit proof that they satisfy the minimum health standards.
Another option is the ability of a policyholder to continue the life policy upon employment termination. It is usually between 30 and 60 days after termination and requires paperwork. A third option is to accelerate benefits. Suppose you are declared terminally ill; your insurer will pay you a death benefit. There is also the choice to purchase voluntary life insurance for domestic partners, spouses, and dependents.
Types of Voluntary Life Insurance
Voluntary Whole Life Insurance
This type of voluntary life insurance protects the insured’s whole life. If whole life coverage is elected for a spouse or dependent, it also protects them.
Voluntary Term Life Insurance
Voluntary term life insurance protects the insured for a limited period, such as 10 or 30 years. Since building cash value is not a characteristic of voluntary term insurance, premiums are less costly than their whole life equivalents.
Is Voluntary Term Life Covered by a Group Insurance?
Yes, voluntary life insurance is covered through a group policy. Because of this, most individual employees can buy a policy under the umbrella plan without a medical examination or underwriting. In addition, premium costs will usually be less than for an individual policy.
Who Should Receive Voluntary Life Insurance?
If you are unable to qualify for another life insurance policy, receiving one through your employer is a great idea. Voluntary life insurance is suitable for patients with pre-existing health conditions. Or if you want more coverage on top of another policy that you already have.
Find the Right Health Insurance Solutions for Your Needs
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on X, Facebook, and Linkedin