What is voluntary life insurance?
Voluntary life insurance is an optional life insurance benefit offered to employees through their employers.
1 Because voluntary life insurance policies are sponsored through the employer, premiums for voluntary life insurance policies are often associated with being less expensive than other individual life insurance policies available on the market. Generally speaking, voluntary life insurance benefits provide a cash benefit to the beneficiary of the voluntary life insurance policy in the event of the insured employee’s death.
Generally speaking, voluntary life insurance benefits provide a cash benefit to the beneficiary of the voluntary life insurance policy in the event of the insured employee’s death.
How do voluntary life insurance benefits work?
If your employer offers voluntary life insurance benefits, all you have to do is review the policy and enroll. Since most voluntary life insurance policies are guaranteed issue, a medical exam is not typically required to enroll in these policies.
1 As a result, voluntary life insurance can be a good option for employees looking for a more budget-friendly life insurance, especially in the event they have a medical condition which may limit their ability to enroll in other policies.
The benefits of voluntary life insurance
There are a number of benefits to enrolling in voluntary life insurance through your employer. Two of the more notable benefits of voluntary life insurance include:
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Convenience
If you’re struggling to find a life insurance policy, the voluntary life insurance policy provided by your employer may be a good place to start and end your search.2
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Affordability
Since voluntary life insurance policies are provided through your employer, they often cost less or nothing at all. Often times, voluntary life insurance is an easy and budget-friendly choice when looking to select a life insurance policy.2
Many employers provide voluntary life insurance to their employees as part of their benefits package. With convenience and competitive pricing as two noteworthy features of a voluntary life insurance policy, it’s easy to see why so many Americans end up enrolling in one. While the cash benefit of a voluntary life insurance policy isn’t often as high as other individual life insurance policies, a voluntary life insurance policy can be a great way to help ensure your family is covered in the event of your death at a low cost.