BC Local News recently reported that when determining if a employer-sponsored group life insurance plan is a good option, consumers should get as much information on the policy and coverage as they can before making a decision.
According to the news source, employees should read the materials breaking down the coverage very carefully, paying particularly close attention to periodic notices. Plans often become revised or terminated by employers throughout an employee's time at the job, and it is required that they provide adequate notice to employees when making the changes.
Group coverage plans do not take into account each employee's individual needs, and may not provide adequate coverage. The news source reported most plans provide partial coverage, and even if spouses each have group coverage it may not be enough as the policies usually overlap but still leave gaps.
A recent study by LIMRA found that 30 percent of U.S. employers are considering adding a new voluntary option to their group plan for employees within the next two years. Common voluntary benefits include life, cancer, dental and vision, along with voluntary long-term and short-term disability insurance products.
Currently 57 percent of employers offer voluntary benefits, the survey showed. And almost one-third of employers are considering completely replacing their existing employer-paid and contributory benefits with voluntary benefits.