Posts Tagged ‘Life cover Insurance’
Life Insurance with a Group
Does your company offer group life insurance? If not, they might be ignoring one of the most cost effective ways to make their benefits package more attractive to potential and current employees.
Employees have come to expect more than a salary from their employers. In a recent Wall Street survey, participants were asked if they would rather have no pay increase but retain current benefits, or get a raise and see benefits decrease. Fifty six percent of respondents said they would rather keep their benefits and sacrifice an increase in pay. This illustrates how important it is for employers to offer a competitive benefits package to their staff members.
Among the benefits an employer can offer, group life insurance serves as an fantastic way to entice new employees. It also increases the morale of current employees and fosters a better sense of loyalty within the company.
Group life insurance policies can apply to existing or new employee. Family members are often included as well, with a nominal amount being paid by the employee. Most policies also offer extra benefits allowing employees to choose at a discounted rate. This makes it easy for employers to offer more than 1 plan, while paying a minimal amount for insurance premiums.
Group life insurance cover is often less expensive than individual life insurance for several reasons. First of all, group life insurance is a form of collective bargaining.It involves less paperwork for the agents and less time in selling to each individual. These incentives are extremely helpful in order to enable insurance companies to offer lower rates on group life insurance policies.
Employers benefit from group life insurance in a very unique way. There are no mandatory medical examinations in order to be qualified. For some, this is the difference between being able to obtain life insurance and not being able to qualify for coverage. Chronic diseases make getting life insurance hard. The fact that people can obtain life insurance through their places of employment could be enough of a reason to persuade hard working employees to stay in their positions.
Additional Benefits of Group Life cover Insurance
· Since group life insurance is part of wages paid, it is tax deductible. Adding benefits to employee packages improves morale and productivity.
· Many plans offer a waiver of premium benefit. If an employee is totally disabled, they will be able to continue group life insurance coverage without paying the premiums. This is yet another tangible symbol of a company’s appreciation for its employees.
· Employers can customize group life insurance policies to fit company needs. Many plans can be tailored to meet specific employees.
A company’s benefits package is the main attraction to the work force. Adding to it will attract a better, more loyal staff, and help retain the hardest workers.
How Much Life Insurance do I need
The face value on life insurance policies vary from person to person. There are essentially two factors that come into play when purchasing life insurance. The first is the amount of money it would it take for a family to maintain the standard of living to which they currently have and how much a family can afford to pay for insurance premiums each month.
A life insurance policy should depend on the amount of money a family will need to maintain a similar quality of living. This means that there is a certain monthly or yearly income needed to pay for minor and major expenses such a mortgage, cars and education. Life insurance needs vary with each situation.If there are young children in the home, it is safe to assume that they will need funds to support them until they are able to pay their own way. The approximate costs of college education must be calculated and added to their other overall expenses, such as for clothing, food, shelter and other necessities must. In addition, outstanding debts, such as mortgage and car payments must be included. Finally, calculate any additional expenses needed to maintain the same standard of life.
One can consult with a reputable financial advisor to help them construct a viable estate plan to ensure security and stability for their beneficiaries.Even during this time when the markets are unpredictable, financial advisors can help their clients put their money in the investments that will give reasonable returns on their investments each year. An acceptable rule of thumb is to approximate the income taxes on investment returns at 35% to predict yearly income. Divide the annual income by 12 to arrive at an average monthly income. For example, if a family has $8,000 in expenses per month, they will need approximately $3,000,000 in coverage.
This is likely a conservative amount of life insurance as $3,000,000 earning 5% interest yearly equates to $150,000 in annual income.After taxes, the annual income would be around ,000 or ,000 per month.
One should only consider an amount of life insurance cover that requires an annual premium that is affordable. Consumers must be prudent when purchasing a life insurance cover policy. It is essential that they know their limits, because purchasing a policy and having it cancelled because they cannot afford the payments will result in a loss of the premiums invested and their beneficiaries will receive no death benefit.
It is relatively easy for consumers to find that happy medium where they are comfortable with the cost of the premiums and the amount of coverage it provides to sustain the same standard of living for their families.
Please note that this article is informational and not to be considered professional advice.
Do you want to Pay Less for your Life Insurance
Many people feel that they simply can’t afford life cover, believing that it is just an added expense for something they may not even need. However, getting and keeping life insurance is important to ensure your dependents will remain financially secure if the worst happens.It is possible to save money on your life insurance and make it more affordable, without compromising your policy.
As with any other large purchase, you will receive a better deal and get insurance that meets your needs by shopping around and getting several quotes before you make the final decision. There are many websites that will allow consumers to very easily and quickly compare policies from several companies at one time.
Look for no-load or low-load policies that have fewer built-in expenses such as commissions or marketing fees. These policies often have lower premiums without compromising on quality. Look for these types of policies and seek input from a financial advisor. Most financial advisors change a flat fee for their services rather than working on commission like insurance agents do, which typically means that the consumer will pay less overall.
Healthy policy holders are at a definite advantage when it comes to buying insurance. They should not be tempted to put it off as a delay could mean the onset of a chronic health condition that may effect premium rates. Life insurance cover will protect policy holders and their family members for far less it is purchased while the insured is in relative good health. Waiting until health challenges appear will make it impossible to get a low-cost life insurance policy. Consumers who are in good health, should not invest in a guaranteed issue life insurance policy that allows applicants to avoid taking medical examinations. These are considered high risk policies by insurance companies and the premiums are generally much higher than policies that require medical clearance.
If you are in a position where health problems are making it difficult to get cost effective insurance, the best way to save money is to first of all take steps to improve your health and overall physical fitness.Smokers pay nearly 3 times as much in premiums than non-smokers; policy holders who are overweight also pay higher premiums. People with pre-existing medical conditions such as hypertension or diabetes, can improve their chances of saving money by showing that they are responsible when it comes to managing their health.
Life insurance needs change over time. You will need more insurance when you start a family.As the kids grow up and leave the home, need for insurance will be lower. Experts suggest that life insurance policies be reviewed every three years to ensure that your policy fits for your changing lifestyle and circumstances.