Health insurance

The Value of a Group Term Life Policy

Now that the economy has taken a downturn and your finances are taking center stage, we want to remind you of the value of purchasing a Group Term Life policy.

Group Term Life insurance is an inexpensive way to have money available during the event of a death.

To put this in another perspective, a Group Term Life insurance policy may guarantee $15,000 to $30,000 through one purchase compared to the years it would take to accumulate this amount in a retirement plan.

And the greatest part is that amount is not tied to the stock market.

Group Term Life is a valuable wealth management tool and should not be overlooked.

A recent Life insurance study showed that employees often overestimate the cost of a life insurance policy. To help you make a decision, here are some facts to consider:

Group Term Life Insurance can be inexpensive. In fact, it may be less expensive than an individual policy. Policies may be as cheap as 10 cents per $1,000 insured to $1.53 per $1,000 insured, per month, per person. The cost depends on your age, the amount of insurance purchased, the size of your group and the minimum age your benefits begin reduction; typically beginning at age 65 but may change upon request. All factors are spread across the employees of a group, making a group policy more affordable.

A Group Term Life policy offers other advantages.Smokers can get coverage, and getting a physical is not required.On certain voluntary life policies, where the employee pays for coverage, you may be asked to fill out a short medical questionnaire, but this is not required for plans fully paid by the employer.

The amount your Group Term Life policy covers may be 1 to 3 times your salary, based on your job title, or even a set amount; and payments are tax-deductible.

Having medical insurance may not be enough. While it helps to have medical insurance to cover those visits to the doctor, it may not provide the coverage you or your family may need if something goes seriously wrong. A traditional funeral can cost $6,000 to $15,000, and that does not even include debts, monthly income and the cost of education for your children.

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