When your employer-paid group life insurance doesn't offer enough coverage, voluntary life insurance might be a way to help fill the gap.
What is voluntary life insurance?
Voluntary life insurance is a type of group life insurance that's offered by many employers. If it's available through work, voluntary life insurance can be an easy way to buy additional insurance coverage.
Most employer-sponsored group life insurance policies provide a death benefit equal to only one to two years' worth of your salary. While this is a great benefit, it's usually not enough coverage. Voluntary life insurance can be an easy way to get the coverage you need.
Low premiums
Since voluntary life is employer sponsored, adding coverage to your base group life policy might cost less than an individual policy. However, be sure to look up individual policy rates because they could be more cost effective, especially if you are young and healthy.
No medical exam required
As part of a group life insurance policy, voluntary life insurance typically doesn't require a medical exam to qualify for coverage. This can make it a good option for those with pre-existing medical conditions, which can make individual coverage more expensive.
Questions about voluntary life insurance? We've got answers.
To buy voluntary life insurance, your employer must offer it as part of your benefits package. While many employers offer a base amount of group life insurance at no cost, voluntary life insurance (if offered) allows you to buy additional coverage.
The cost of voluntary life insurance will depend on a number of factors, including your age, how much additional death benefit you choose, and the terms of the group plan that your employer has selected. The type of policy you get will also affect the cost. A voluntary term life insurance policy will typically offer the most coverage at the lowest cost. A whole life insurance policy on the other hand (if offered) comes with additional benefits, but is also more expensive. That being said, it's always a good idea to compare rates of owning your own policy to an employer sponsor policy as it could be cheaper.
It depends. Typically, you can only take out money from policies that have a cash value component, such as whole life or universal life insurance. These policies accumulate cash value over time, which you can access through withdrawals or loans. Withdrawals reduce the policy's cash value and death benefit, while loans accrue interest and must be repaid to avoid reducing the death benefit. It's important to review your policy terms to understand the specific options and consequences associated with accessing funds from your voluntary life insurance policy.
If you're a business owner looking to provide group life insurance to your employees, Northwestern Mutual can help with our contributory group life insurance, which is similar to voluntary life insurance. Connect with an advisor to find out more. If you're looking to add voluntary life insurance for yourself, reach out to your human resources department at work to see which benefits are available to you. You can also get life insurance outside of work. See which life insurance options from Northwestern Mutual could be right for you.
Group life insurance is a form of life insurance that is offered to a group, typically as part of a work benefits package. Voluntary life insurance is a type of group life insurance that lets you buy additional coverage on top of a base policy.
Since Voluntary life insurance is often offered through an employer as a form of group life insurance, you typically won't need to answer any medical questions or take a medical exam to buy additional voluntary coverage. Instead, it usually relies on a simplified underwriting process or may even be issued on a guaranteed issue basis, especially for smaller coverage amounts. However, the specific requirements can vary by insurer and the amount of coverage you're applying for. For larger coverage amounts, a medical exam might still be required. Always check the details of the specific policy or consult with your employer or the insurance provider for accurate information. Want to learn more about life insurance without a medical exam? Check out this article.
Term life insurance is designed to pay your beneficiary a death benefit if you die during the term in which your policy is in effect. Voluntary life insurance can be a form of term life insurance made available through your employer.
The key difference between voluntary life insurance and an individual term life policy is that the coverage provided by your voluntary policy might end when your employment ends. With an individual term life policy, coverage is not tied to your employer. Connect with an advisor to explore your options.
Yes. You can choose to buy voluntary life insurance through your employer even if you already have an individual policy of your own. Because voluntary life insurance tends to be affordable and doesn't require a medical exam, it can be an easy way to increase your coverage. But there are also benefits to getting individual life insurance outside your employer's group coverage. Connect with an advisor to explore your options.
Most employer-sponsored group life policies offer a death benefit equal to only one or two years' worth of your salary. This is far below the amount that most people need. You could fill the gap by buying voluntary life insurance through your employer. However, it might make more sense to get an individual policy. That's because your voluntary life coverage may end if you leave the company. Individual policies are not tied to your job and will remain in effect no matter where you work. Explore life insurance options from Northwestern Mutual.
You might be able to convert voluntary life insurance into an individual policy to keep your coverage. But it's possible that you will lose your coverage if you leave your job. Accidents, illness and death are as likely to happen when you're in the midst of a job change as any other time. This is why owning a life insurance policy not tied to your employer is a good idea. No matter where your career leads, your coverage will always be with you.
Want to learn more about what happens to your benefits when you leave your job? Read this article.
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