Voluntary life insurance

Voluntary life insurance-persons who wishes to obtain medical insurance but faces the challenge of not having enough money may take advantage of voluntary life insurance. It is an optional benefit offered by the employer to the employees.

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This article entails everything you need to know about what voluntary life insurance is and why you should not let the offer slide pass you.

What is voluntary life insurance

This is an  employees benefits insurance that an employer offers. In this type of insurance, the employee pays the premium, while their beneficiaries receive the benefit, should the employee die while the voluntary insurance is in force.

Moreso, since the employer is the sponsor of the insurance for several employees, the premium to be paid will be lower than when the employees purchase the insurance individually in a marketplace. this type of insurance offers Many workers benefit since the coverage is entirely low and do not necessarily require any form of medical exam. In addition, one can also use the opportunity and purchase an insurance policy that have coverage for your spouse. Though this option is not being offered by many insurance companies.

Benefits associated with It

1. It has the benefit of upgrading the voluntary life insurance plan
2. Portability of the coverage. Which means that, it gives opportunity to continue with the insurance policy even when one changes an employer.
3. Accelerated benefits
4. Opportunity to purchase plan for one’s spouse or other family members
5. Opportunity to remove premium directly from one’s salary.

Types of voluntary life insurance 

Voluntary Term Life Insurance 

Term life insurance is an incredible insurance and can be bought as voluntary life insurance as part of a group insurance through your employer with a particular amount as a premium. Term life insurance offers a death benefit, and also the premium you pay will remain at the same level for a very long period of time. You also have the tendency of renewing the purchased plan when ones the expiration of the plan you purchased have expired.

Voluntary whole life insurance

This Type of insurance is not as common as that of term life insurance. Whole life insurance can somehow be seen as a type of permanent insurance. However, permanent life insurance when being offered as voluntary insurance comes with a higher premium than term life insurance. But the most interesting thing about it is that, while the premium is higher, it typically builds up cash as you progress.

Structures of life insurance

Contracts to life insurance have basically three types of structures they are;

1. Death benefit
2. Premiums
3. Cash value.

Conclusion

You need to be aware that Voluntary life insurance comes with alot of its benefits. It is good you you buy one especially if your pocket strength is not so high. moreover, if you have a medical condition, it is an opportunity that would guarantee you of transferring your health risk management to the insurance company, while you keep your life savings for yourself other than using it to sponsor for your medical services.