Tis the Season…For Open Enrollment
A little personal myth busting for you…
More than likely, you’re dealing with open enrollment at work. Depending on your company, it can be an easy no brainer process, or it can add to your holiday pressures. Let’s hope, for you, it’s the first one.
I’ve been working with “Felicia” the last few weeks to supplement her life insurance coverage. She was of the impression she had maxed out her group coverage at $100,000. We submitted paperwork for a $1,000,000 10 year policy to cover the needs of her son through college (he’s 14 and she wanted to cushion the few years after graduation too).
When her open enrollment notice for 2013 arrived, she sent over a copy for me to evaluate. She realized she had additional optional coverage available to her and wanted my opinion.
I have always recommended clients max out their group coverage before supplementing with additional life insurance coverage. Reason being the group coverage is almost always the cheapest and you can add on from there. Most people are not adequately covered by group insurance alone.
In this example, the group coverage wasn’t the best option.
For Felicia, the best deal was found in sticking with the policy we were underwriting and foregoing the additional insurance offered by her employer. She was able to add an additional $203,000 of life insurance for $17.54 per month if she enrolled in the optional coverage while the policy we were underwriting through another carrier was $22.06 for $1 million of additional coverage. The employer provided coverage required underwriting and wasn’t portable.
My point? Don’t go on auto pilot during open enrollment. Get online, talk to someone like us, and weigh your options.
Happy Holidays and Happy Shopping!!