Employee benefits are very important to us. Specifically, we get a great deal of peace of mind from the insurance benefits we have access to, through our employers. Although our health insurance costs have gone up considerably over the years, some of the additional offerings, such as life insurance, remain quite low.
However, what happens if you lose your coverage? There are many circumstances that could make that happen; job loss, employer changes/buyouts/mergers/economic difficulties, loss of spouse who carried the coverage, divorce, disability, etc.
What happens to that life insurance? You may be able to continue it directly with the insurance company but it will cost significantly more.
Here is a realistic example:
Depending on the circumstances of the job loss, finances may not allow you to keep this coverage. Health insurance and living expenses are likely to take priority over keeping this life insurance at these higher rates. You may think you’ll just get whatever your next employer offers; which is risky.
If you do decide to keep the coverage, you may be surprised to learn that your death benefit will drop by 50% when you turn 65 and will cease to exist when you turn 75; just below the current average life expectancy in the United States. You may also be shocked to see that your rates will increase dramatically as you age.
It is important to have life insurance that you control. There are many types of policies that can offer much more than a simple death benefit; living benefits and investment benefits are available as well. The younger and healthier you are, the better rates and return on investment you can get. However, there are many options available to those that are more mature in years and even have some health conditions.
I would be happy to do a complementary consultation with you to identify personalized options that will bring you peace of mind and protection for your family. Please contact me at 402-686-0230 or request more information on the website.
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