If you’re like most people, when someone says life insurance, your first thought is to change the subject—after all, death and dying are not topics we want to dwell on. But life insurance can be as much about living as dying. It gives you peace of mind that the people you love will be financially secure if something happens to you.
Life insurance pays a benefit (called a death benefit, which is usually a lump sum) to a beneficiary after your death. If you have a life insurance policy on a family member (such as your spouse or your child(ren)), you would receive the money if that family member died. This money can help replace your income. Your family can use it to pay daily living expenses, the mortgage or rent, funeral expenses, college tuition, etc. And your survivors usually do not have to pay income tax on the life insurance benefit.
Basic vs. Voluntary
The company provides Basic Life Insurance to employees at no cost. You automatically receive this benefit.
The company also offers you the option to purchase Voluntary Life Insurance for yourself, your spouse and dependent(s), which gives you the chance to buy a greater amount of coverage through your company’s group rates. If you are deciding whether or not to participate in the voluntary coverage, ask yourself whether the difference between the basic benefit and the voluntary option is worth the cost of coverage for you and your family.
To learn more about your life insurance options, click here.