What Is Voluntary Life Insurance and How Does It Work?

Voluntary life insurance is be a great benefit for employees who might otherwise be unable to purchase life insurance privately due to a medical condition.

September 30, 2019 | By Roger Wohlner – TheStreet

Voluntary life insurance can be a valuable employee benefit for many workers. Coverage is generally low-cost and there are no medical exams required.

What Is Voluntary Life Insurance?

Voluntary life insurance is an employee benefit option offered by many employers to their employees. The employee pays the monthly premium to the insurance company offering the policy. In exchange, the employee’s beneficiaries will receive a death benefit should the employee die while the policy is in force.

Many companies also offer the opportunity for the employee to purchase policies for their spouse and children if desired.

Due to the employer’s sponsorship of the policy, the premiums are generally lower than employees would find for a similar policy if they purchased it privately.

How Does Voluntary Life Insurance Work?

Voluntary life insurance is generally guaranteed issue up to some limit on the death benefit. Guaranteed issue means that there is no medical exam required; applicants won’t be refused based upon any sort of medical condition.

(Read more…)