Adding Value to Employee Benefits

Employees who take advantage of the benefits package that their employees offer tend to be more devoted to their employers, display more job satisfaction, and are more conscientious about their work. The cost of health insurance may have increased for many workers due to the recent enactment of changes in health care through the Obama administration. Therefore, many employers are offering supplemental benefits to help offset the costs of out-of-pocket expenses for the employees.

One of the most popular supplemental benefit is the Accidental Death Indemnity policy or the Accidental Death and Dismemberment Benefit Rider. This benefit offers an additional amount equal to the face amount of the policy or the life insurance policy, if purchased as a rider. If death to the named insured ensues resulting from an accident on a common carrier, such as a train, bus, or airplane, the beneficiary on the policy would receive an additional amount as specified in the policy.

To derive the maximum benefit from the policy, anyone who travels quite frequently during the year on trips, whose work includes driving frequently to appointments, or who operates machinery or other vehicles during the course of their employment, should seriously consider purchasing this policy or adding a rider to their life insurance policy.

Another factor to consider in adding the rider or purchasing an accidental death indemnity policy, is the increase in accidents due to cell phone use. People who use cell phones while driving are four times more likely to have an accident. Teens and sales professionals have been using cell phones while driving in recent years, causing many fatal accidents. Because of the catastrophic losses sustained in legal battles with the victim’s families, some major corporations have undertaken a policy to prohibit their sales professionals from using cell phones while driving. Teens have been responsible for approximately twelve percent of all automobile accidents.

An employee could purchase the policy on himself/herself and add riders to cover a spouse and children. The additional amount of protection would be advantageous to the beneficiaries at the time of loss. As with all other life insurance policies, there are exclusions under the policy which would place limitations on whether the beneficiary could collect a benefit in certain types of accidents.

In conclusion, anyone who earns a living while driving a vehicle or who frequently travels by common carrier should consider purchasing an accidental death and dismemberment policy or adding the rider to their supplemental benefits policy or personal life insurance policy.

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When to Consider Buying Life Insurance

There are life events which should encourage families to consider buying life insurance. Unfortunately, life insurance is not a priority in the lives of many young families, as younger people tend to believe that they have many years ahead of them. However, the prudent thing to do would be to purchase life insurance to cover a loss of income in the event that something happens to one or both of the parents or if they become disabled.

They can purchase enough life insurance to cover college costs as well for the children. In the case of younger parents, life insurance is very inexpensive in the earlier years and parents would be able to afford to buy higher amounts of insurance coverage.

Newly weds should consider buying life insurance on themselves to protect their incomes in the event that something happens to them. If husband and wife are working, both can purchase life insurance on themselves. In this way, both can continue their normal lifestyles in the event of death or disability of the spouse.

When couples purchase a home, one thing that needs to be done is to purchase mortgage insurance to cover the mortgage in the event of death or disability of one of the partners. Many people suffered a loss of their properties during the economic crisis because they were not adequately insured. Some people may not be able to purchase enough to cover the entire mortgage, but any amount which they can afford would help their family.

When families experience financial hardship, the insurance is usually the first thing to go. Now, with the changes that insurance companies have enacted, families can continue their life insurance coverage in the event that the policyholder is disabled, unemployed, or when the family suffers a natural disaster.

In conclusion, families need to consider purchasing or increasing life insurance when they marry, purchase a home, or begin to have children, if they care about making sure they are protected in the event of death or disability. If you would like a review of your situation, feel free to contact me.

 

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Life Insurance Awareness Month

                       

It is Life Insurance Awareness Month and now may be a good time to review your life insurance.  Many people avoid getting life insurance because of the thought of dying.  We do not want to face the issues.  But, the fact of the matter is, that if we care about our families, we should take the time to make sure that they are protected in the event of our untimely death.

Many of us procrastinate and if we are not careful, we may wait too long to resolve the problem.   We may be prevented from doing that because of accident, illness, or death.  Then the family suffers because of our failure to plan.

In some cases, life insurance is not as expensive as some may think.  Sure, we may have health problems, but some of the companies will insure some people that others may not.  Just because one refuses to insure you does mean that they all will.  Each company has must meet certain criteria in order to manage the risks associated with providing insurance.

I just met with someone who had substantially less coverage for life insurance than he originally thought.   After reviewing the policy and the costs associated with burial, I recommend more coverage.  After discussing the option with him, he decided to purchase more insurance.

In conclusion, it would be beneficial to review your policy periodically to determine if the coverage is adequate, and if it is not, to increase it.  If you do not have a plan for insurance, it is highly recommended that you obtain a plan before something happens.