Life Insurance FAQ
How much life insurance do I need?
The amount of life insurance needed varies from person to person and is highly subjective. However, at the end of the day it is helpful to determine how much money your spouse and family will need if you are no longer around to provide for them.
Life insurance amounts are determined not only by final expenses and medical bills, but include mortgage debt or rent payments, monthly financial obligations, accumulated debt, number of dependents and anticipated educational expenses for them. Factors to help offset the life insurance needs would include: personal savings, employer-paid group life insurance, as well as other benefits the family can expect to receive .
Click here for a life insurance needs calculator that will help you determine the amount of coverage that is right for you.
What happens to my group life insurance if I leave employment? Most group life policies provide a conversion provision which allows you to elect an individual policy without providing proof of good health. In Minnesota, both the basic life (employer-paid) and all supplemental life insurance are subject to
MOBRA (Minnesota Continuation.) The employee can elect to keep both the basic life insurance and any optional coverage for up to 18 months at the group rates. The employee must continue the basic life in order to continue supplemental. Premium is paid to the employer. At the end of the 18 months, the individual can convert the life insurance to an individual policy with no health questions asked.
Is there any group life insurance I can obtain without answering health questions? In most cases, the basic life provided by the employer is guarantee issue. In addition,
The Municipal Pool group life insurance provides certain rights to new employees. This includes the opportunity to purchase supplemental insurance with no health questions asked. While each group contract may be individualized by the employer, most of the voluntary policies in The Municipal Pool contain a guarantee issue amount for the employee of $30,000 and $10,000 for the employee's spouse and each dependent child. If there is a qualifying event, such as marriage or birth or adoption of a child, an employee can add spouse or child insurance without health questions as long as the request is made within 30 days of the event.
