The very best time for you to buy life insurance is, of course, right now. However the second-best time might be during open enrollment at the office, when you're already having your financial house in order by looking into making decisions about healthcare, 401Ks and other benefits. That can be a timing works, the life insurance policies available with an employer have traditionally offered less coverage than you might need, typically maxing out at one or two times your salary. But that's about to change, thanks to Salary Protection, a new (and very straightforward) product sold by trusted life insurance agency, Haven Life.
Salary Protection can be purchased entirely online through participating benefits enrollment programs. It’s a phrase life insurance coverage, from MassMutual subsidiary C.M. Life, that pays an employee’s beneficiary an amount comparable to their paycheck each month – for up to Fifteen years – when they were to perish during the coverage period.
You'll see Salary Protection alongside other term life insurance possibilities through your benefits provider. Here are some important (and useful) ways it is different from the open enrollment competition.
Unlike many life policies you get using your employer, that one is exactly what we in the business call “portable” – it is going where you go, even if you change jobs. (Another coverage is technically “portable,” but they need a fee, or perhaps additional exam, that you should keep your coverage should you change jobs.) Even though you take on a new challenge inside your work life, you should have protection for the life-life.
Given the ups and downs from the employment market this season, this will be significant: If you lose your job, you will still keep the Salary Protection, so long as you keep your monthly payments. This is obviously great in case your career hits a bump within the road, but it's also useful if you choose to leave your present job and wish to spend some time finding the next one, or if you opt and begin your own business. Whatever happens, you keep your coverage.
There's no medical exam
Haven Life has already made life insurance coverage exceptionally easy and quick, and Salary Protection isn't any exception. Things are done digitally, and there's no requirement for a health check. (Just know that issuing the policy or paying its benefits depends on your insurability, based on your answers to the health questions within the application, so that your truthfulness is key here.) You are able to sign up instantly using your employer's benefits portal. It is, when we let them know ourselves, an incredibly convenient way to get coverage.
It offers an easy-to-manage, monthly payout
Traditional life insurance pays out a lump sum payment (the “death benefit”) when the policy holder dies – in a nutshell, your beneficiaries receive the full worth of your policy, all at once. (Typically tax-free.) Salary Protection requires a more gradual approach, replacing your salary over a number of years.
We're guessing that income is vital to your family's financial stability, and Salary Protection is designed to mirror that stability whenever your loved ones require it most. If you were to pass away throughout the term length, all your family members will receive your monthly salary as a death benefit for a minimum of 5 years. Here's how it operates: if your wages are $5,000 per month, and you died in year a couple of a 15-year term policy, all your family members will receive $5,000 a month for 13 years. Or, should you perish 13 years into having the policy, your loved ones would receive $5,000 per month for the minimum time period of 5 years.
A decade of financial protection for just a few dollars monthly, along with a couple of minutes of your time during open enrollment? We're no math wizards, but which makes lots of sense to us. (Update: Our actuaries reveal that lots of people in we are, actually, math wizards.)