This post is part of a series on choosing benefits. Today I will look at the ins and outs of our choices for Life Insurance.
The next item on the benefits agenda is life insurance. Again, Large Conglomerate has several offerings. Some are free, and some we must pay for.
We are offered:
- Basic Life/Accidental Death and Dismemberment, with CIGNA Secure Travel
- Business Travel Accident Insurance
- Supplemental Life Insurance
- Personal Accident Insurance
- Dependent Life Insurance
All of these are provided at NO COST TO US:
Basic Life/Accidental Death and Dismemberment
- Basic Life Insurance -standard life insurance with a death benefit of 1.5 times Husband’s base salary.
- Accidental Death and Dismemberment (ADD) Insurance – pays an additional amount up to 1.5 times Husband’s base salary if the death is accidental, or if he suffers a dismemberment. I haven’t seen the coverage for dismemberment, but these benefits are usually paid out as a percentage of the death benefit, and that percentage depends on what has been, er, lost. I can’t find ours, but here’s a link to another policy and the coverage is likely similar. It’s a bit macabre to read. And no, it doesn’t cover if you lose your pinky toe. Ouch.
CIGNA Secure Travel – This isn’t a death benefit. As part of the ADD coverage, CIGNA Secure Travel provides emergency medical and travel services whentraveling more than 100 miles from home on company business or vacation. I never really read this carefully before as Husband doesn’t travel for business, so I didn’t realize it covers vacations, too. We can get help with pre-trip foreign travel assistance, interpreters, medical referrals, prescription refills, emergency travel services, and transportation of remains. I will make sure I travel with their 800 number in the future.
Business Travel Accident Insurance
This is the death benefit coverage that pays if Husband dies or is dismembered while on company business. Benefits vary based on the severity of the injury, but generally will pay up to four times his annual base salary up to 1.5 miillion. We won’t have any problem staying under that threshold. It generally does not cover accidents to and from work. It likely would provide coverage if he had to go see a client. If Son and/or I accompanied Husband on a business trip we are also covered, with $50,000 for me and $25000 for Son.
All of that is free, so a very big YES, and thank you very much.
These benefits are offered at an additional cost to us:
Supplemental Life Insurance – Allows us to purchase an additional amount of life insurance from one to five times Husband’s salary. Premiums are paid with after-tax dollars, so there is no tax benefit. When Husband first started with the company we purchased this coverage, but only did three times his salary. Then we found out he’s Diabetic. We’d love to increase it, but to increase coverage after you initually enroll you have to show Evidence of Insurability. Yeah, not happening. Rates are based on age and salary, and the policy is portable which means you can take it with you when you leave, as long as you are under age 70. That’s definitely what we’ll be doing, as buying new Life Insurance for Husband is just way too expensive.
Personal Accident Insurance – This is a new benefit this year. Basically it’s just another accident policy, but it’s cheap ($.22 per $1000 of coverage), and they do not require Evidence of Insurability. Pretty much any time I can buy coverage for him without evidence of insurability I do. Thank you, Diabetes.
Dependent Life Insurance – Son and I are eligible for coverage, and we can choose several different amounts. We did choose $50000 for me when we got married, which also gives us $10000 for Son. Again the Evidence of Insurability monster rears it’s ugly head and we cannot increase this. I have another $25000 in a paid up whole life policy I bought before I retired. It’s not rated for age, so the $13 per month we pay isn’t bad.
So, yes, we are taking all of that, too. The bottom line for us and life insurance is that we take as much as we can through work because we won’t be able to get anywhere near a decent rate with individual policies. Yay aging. Yay Diabetes. Yay asthma.
Tomorrow I’ll wind up the series talking about Long Term Care, Legal, Pet Insurance, Discount Programs and the rest.
And then I’ll start writing posts that don’t put you all to sleep. It will be a nice change.
Read the rest of the series!