Sometimes companies or other organizations will offer life insurance plans to their staff as part of their remuneration package. These can be great to have, however there are some important points to check. We’ll look at some of the most important: 1. What is the cost of the life insurance? Sometimes workplace life insurance will be free †while in other cases it might be discounted, either slightly or heavily. Because a workplace life insurance policy will usually be not as flexible as a policy that you could set up yourself, the cost can be important. If the plan is free or very cheap, you might be willing to accept some deficiencies †however you would be less accepting of these if the plan is not much cheaper than other options. 2. Who owns the life insurance? In most cases you should be able to own your own life insurance (or select an owner). However there are some plans where the insurance is actually owned by the employer †which can be a major problem - as you might not be able to control what happens to the proceeds of the insurance if a claim were ever needed. 3. Can you keep the life insurance even if you leave the company? Some companies will offer a plan that you can keep, even if you leave your employment †however some other plans will cease. It’s vital that you can keep any plan, regardless of future changes in employment. 4. Can the life insurance be stopped without your permission? Some employers reserve the right to cancel the life insurance if they want to (for example if they decide to remove this as an employee benefit). This is a danger †with any form of life insurance it’s important that you are totally in control of the policy. 5. What is the fine print compared to a â€normal†life insurance policy? It’s quite common for workplace life insurance to have tighter terms and conditions than other life insurance. Make sure you review these so that you understand what your plan can do †and which areas it does not cover that a normal life insurance plan would.
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