The life insurance coverage provided by your employer is one of the many benefits you may not think about on a regular basis. As long as you are working, it is something listed on your pay stub and in a yearly benefits statement.
Your coverage is there as long as you are employed. But what happens when you retire? Will you still have all the coverage you had? Does it retire when you do?
These are questions that will eventually need answering. There are a number of ways your group life insurance coverages can be affected when you leave the workforce.
If your employer offers extended coverage, the level of coverage you enjoyed while you were working may not be available to you. In addition, the flexibility of your prior coverage may not be part of the extended coverage.
The cost of extended coverage also may be prohibitive. Because the premiums will be determined by your age at retirement, the price may be a great deal higher than you can afford. And, if your surviving spouse qualifies for survivor benefits from Social Security, it may not be sufficient to maintain your surviving spouse’s standard of living.
After you meet with your company’s benefit specialist for information about what options you have for continuing your group life insurance after retiring, talk with your insurance agent about your life insurance options. Sitting down with someone you know today can give you and your loved ones confidence in your future financial security.
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If you suspect a scam, call the NICB hotline at 1–800–TEL–NICB.
For information about auto insurance and insurance fraud, contact your insurance agent.
(Published on December 13, 2008 in Asian Journal Los Angeles p. C9)
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