The “Group Life” Nightmare
Don't Depend On This Coverage In A Down Economy!
It's the abyss of cash flow. Times are still tough and may get more interesting as we move into the spring of this year. Health Care Reform is looming on the horizon and there isn't a program the Feds in Washington don't like.
With the new “spend at will” Congress, employers may be facing tough decisions related your workplace benefits. Those that have the luxury of a workplace that offers Group Life Insurance may see that coverage disappear or get reduced.
There are two ways that the coverage may end. If you face a layoff you will lose the benefit, or the employer may terminate the plan due to economic conditions. At that point, you must make a decision that may leave you lying awake at night. At the time the plan is terminated, you may have a right to convert the amount life insurance you have to a policy offered by the same carrier. The pitfall of this alternative is simple. Most companies will only offer you a certain type of policy that is usually more expensive than you anticipated.
The second option is to look around for your own life insurance. In this case, you will most likely go through a medical exam and will be rated at your current age. This can wind up costing you more that you expected.
In this economy, strange things happen overnight. The Colts left town in Mayflower Moving vans on a cold March night over 25 years ago. Your coverage can sneak away at the blink of an eye. The quick answer to avoid this nightmare is to ALWAYS own your own policy – regardless of what your employer offers you at work. Buy it now, and keep it. Then you own it!
About the Author:
Jeff Rosenkilde is a Certified Insurance Counselor and has owned his own firm for over 25 years. He is also a graduate of the University of Baltimore – School of Business and is an expert on Small Employer Business Programs. Jeff works with over five hundred businesses in the Maryland, Virginia and Pennsylvania area.