Did You Know?
The average out-of-pocket cost for end-of-life and funeral expenses is over $20,0001
What is life insurance and why do I need it?
Life insurance is a cost-effective way to protect your family and finances. Should something unforeseen happen to you, it helps ensure that short and long-term financial obligations could be met.
If you have a spouse, or a family (domestic partner and/or children), they may rely on you to help keep the household running. Life insurance gives you confidence that your family would be financially prepared without you to handle expenses.
In the event of your passing, life insurance provides money directly to the individuals you select, your beneficiaries, who can use the money as they see fit, including:
- Replacing lost income
- Covering basic living expenses
- Paying household debts, estate taxes, and funeral expenses
- Funding a child’s education
- Supplementing retirement savings
What kinds of life insurance can I get at work?
Life insurance comes in two main types – term and permanent – which may both be available through your workplace.
Term life insurance pays a specific lump sum to your loved ones for a specified period of time – usually from one to 20 years. If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy, but they do not build cash value. They may also give you the option to port. That is, you can take the coverage with you if you leave your company.
Generally, you should consider a term life insurance policy to:
- Get valuable coverage at an affordable price
- Help cover specific financial responsibilities like a mortgage or college expenses
- Supplement a permanent policy
Permanent life insurance policies do not expire. They are intended to protect your loved ones permanently, as long as you pay your premiums. Some permanent life insurance policies accumulate cash value. That means, the value of the policy will grow each year, tax-deferred, until it matches the face value of the policy. The cash can generally be accessed via loans or withdrawals, and can be used for a variety of purposes. This type of plan is typically portable so coverage can continue if employment terminates.
Consider a permanent insurance policy if you want:
- Protection for life
- Payments that stay the same each year
- To put additional money into the policy on a tax-favored basis
- Cash value you can use while you are living
What are the advantages of purchasing life insurance through work?
Getting life insurance through work can be an easy way to protect your family. If your employer offers a group plan, consider signing up for advantages that may include:
- Competitive group rates
- Guaranteed issue, meaning you can get a certain amount of coverage without answering health questions or taking a medical exam
- Convenient payroll deductions
- Easy access to enrollment and educational tools that can help you make the right decisions about the type and amount of insurance that’s right for you
- The confidence of knowing that your employer has reviewed and selected the plan
All you have to do is sign up, and sometimes enrollment is automatic.
How much life insurance do I need?
Everyone is different, but it may be more than you have now. The insurance you need changes as your life changes — for example, getting married, starting a family or buying a home may change the type or amount of coverage you need. Many people are surprised to learn that they may not have enough life insurance to cover the many expenses their loved ones will face.
It’s simple to determine the amount of coverage you may need now. Just go to www.metlifeiseasier.com to calculate how much life insurance may be right for you.
How much does life insurance cost?
It may be less expensive than you think. MetLife’s group life insurance plans are an economical way for you to provide for your family with competitive group rates and a wide range of coverage options to choose from. Exact rates can be found in the enrollment materials.
Contact your employer for more information.