Group Life Insurance
- Employers typically pay for a base amount of life insurance for their employees.
- Usually either for a flat amount (i.e. $50,000 each) or for some multiple of salary -- most commonly one times salary.
- Additional amounts of life insurance are usually available to employees at their cost, on a payroll deduction basis, subject to some limited underwriting.
- If you're still in good health and could qualify for individual coverage, pass on the group supplemental coverage because that coverage is normally available for less cost in the open market.
- Plus, individual coverage, unlike group coverage, won't cease when your job ceases.
- If you can’t qualify for individual coverage for whatever reason, then take all the group coverage you can get your hands on.
- Most group policies offer, at termination of employment, the option to convert to a more expensive permanent life insurance policy that you can continue indefinitely.
- If you have Parkinson's and leave your job or go on disability benefits, it's probably a wise idea to convert the group life insurance coverage.
Content for this section provided by Jack Hungelmann, who has had PD since 1996.