Group life coverage is an inexpensive way to protect your family in the event of your death. Many employers offer it as part of a benefits package, with several options from which to choose. Here is some information about the different choices you may have.
Term life insurance pays a sum of money when a person dies within a specified period of time. The policy terminates after this period, unless the policy holder renews it. When the insurance is renewed, however, payout is recalculated based on the person’s age, and thus may decrease in value.
Accidental Death and Dismemberment
Accidental death and dismemberment insurance also provides money to the policy holder’s family, but only when death occurs as a result of an accident. Loss of vision, hearing, and limbs are also covered.
Whole life, also known as traditional life insurance, provides protection for the lifetime of the insured person. This type of policy, while more expensive, has the added benefit of accruing value that can be invested or withdrawn when needed.
No one likes to think about why he or she might need life insurance. However, if you choose a good policy the first time, you can know your family is protected without having to worry about the type of coverage again.