The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors.
Life insurance provides protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.
When using the site to quote your insurance needs, we make it easy for you to view life insurance options available for purchase in a package designed to meet all your insurance needs.
Term life insurance
Term life insurance is the most basic form of life insurance. It provides coverage for a specified period of time (e.g. 1, 5, 10, 15, 20, 25, or 30 years) in exchange for a specified premium. If the death of the insured individual occurs within this period of time or term period, the insurance company will pay the death benefit. If the term period expires while the insured individual is still living, the policy terminates and no death benefit will be paid.
The two main types of term life insurance policies are level premium term life insurance and yearly renewable term life insurance.
Whole Life
In this more traditional life insurance policy, the premiums stay the same over the life of the policy, which stays in effect until your death, even after you’ve paid all the premiums. A cash reserve is built up, but you have no control over how it’s invested.
Universal Life
You can vary the amount of your premium with Universal life insurance policies by using part of your accumulated earnings to cover part of the premium cost. You can also vary the amount of the death benefit. For this flexibility, you’ll pay higher administrative fees.
Variable Life
Variable life polices build up a cash reserve that you can invest in any of the choices offered by the insurance company. The value of your cash reserve depends on how well those investments are doing.
Open Enrollment for 2016 benefits may be over, but you can change your supplemental life insurance coverage anytime.
As you may know, MetLife administers Vanderbilt’s life insurance plan. If you are fully benefits-eligible, Vanderbilt pays for basic life insurance equal to your annual base benefits rate. You can find this by logging in to C2HR and clicking on the “Job Information” tab. For most employees, the annual base benefits rate is your annual salary.
You can purchase supplemental coverage of one, two or three times your salary. The maximum coverage, including the basic life coverage Vanderbilt pays for, is capped at $500,000 unless you are approved for additional coverage by MetLife. Total coverage is limited to $1 million.
Life insurance is something that many people overlook. In most states, you are required to purchase auto insurance. If you are lucky, you can get health insurance from your place of employment. Life insurance is something that people tend to put off, perhaps until when they have a little extra money to spend on it. However, there are many good reasons why you, and your family, need life insurance.
A life insurance policy provides some financial assistance to your family if you, the insured person, passes away. Term life insurance policies can be used to help your spouse pay off the balance of your mortgage. It provides an assurance that your spouse and children won't end up losing the house after you are gone.
Life insurance can also be used to replace the lost income of the deceased person. You and your spouse planned a life together, and that life very likely required two incomes in order for it to continue. A life insurance policy can provide you, and your spouse, with peace of mind. You can rest assured that the lifestyle and standard of living that your spouse and children are accustomed to can continue after you are gone.
One of the most immediate things that a life insurance policy is designed for is to cover the final expenses of the insured person. No one wants to have their family struggle to cover funeral expenses, burial costs, and the medical bills that your health insurance policy didn't cover, especially while your family is grieving for your loss. Your life insurance policy will cover those expenses, and ease the burden on your family in this extremely emotional time.
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