By Juliane Kowalski, Senior Vice President, Group Benefits, MetLife
Editor’s note: Life insurance is not only a way to pay for funeral expenses. It can cover major expenses such as housing, childcare, and college tuition as well as everyday ones like groceries, transportation, and credit card bills.
If we’ve learned anything from the past two years, it’s that none of us knows what tomorrow will bring. And while nobody can control what happens next, we can take steps to prepare for the future.
The Importance of Reviewing Your Employee Benefits Offerings
One of the most important – and often overlooked – steps is to set aside time to review all of the benefits your employer offers. These benefits can help you pay for health care and save for retirement as well as protect loved ones from financial hardships. And, with open enrollment just around the corner, now is the time to make sure you’re getting the most from them.
According to the MetLife 2020 Open Enrollment Survey, most employees do not spend a lot of time researching and selecting benefits during open enrollment, with some saying they spend more time picking out what to watch on TV or streaming services than making selections during open enrollment. As a result, they can overlook other critical benefits.
Life Insurance Deserves Your Attention
Life insurance is a prime example of a benefit that deserves more attention. Recent research indicates 42 percent of Americans would struggle financially within six months if a wage earner died unexpectedly, and one-quarter would struggle within a month. But the threat extends beyond parents of children under 18 or with special needs. Anyone who has dependents, including aging parents, owns a business, or carries significant debt can be at risk, too.
Life insurance is sometimes viewed as a way to pay for funeral expenses. While that is of value, the reality is you can derive much more value by utilizing life insurance to protect loved ones when a wage earner dies. The benefit can cover major expenses such as housing, childcare, and college tuition as well as everyday ones like groceries, transportation, and credit card bills.
Four Things to Know About Life Insurance
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- Minimum Coverage: Many employers provide a level of group life insurance – typically $50,000 or an amount equal to the employee’s annual salary, at no cost to the employee. This is often referred to as “basic” life insurance and generally doesn’t require proof of good health. Employees should understand what level of insurance their employer may provide when assessing their needs.
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- Affordable Rates: Most people need more protection than what basic life provides. Supplemental life coverage provided through an employer can fill that gap and is priced at a group level, which means that the premiums may be lower than employees could find on their own.
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- Added Benefits: Enrolling in group life insurance often includes access to other valuable services at no additional cost, such as estate planning and grief counseling, for both employees and their family members.
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- Convenience: Automatic payroll deduction means employees don’t have to keep track of premium payments.
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The pandemic has left many of us feeling more concerned about protection and safety. Taking time now to review your benefit options and then putting a plan in place to protect loved ones from financial hardships will help ensure that all of you can look to the future – and all that it may bring – with confidence.
Author Note: Juliane Kowalski represents MetLife on The Council for Disability Awareness board.