What Are Voluntary Life Insurance And Spousal Voluntary Life Insurance?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Voluntary Life Insurance

What is Voluntary Life Insurance?

Voluntary life insurance is an optional benefit offered by employers that provides you with the flexibility to choose the coverage you need. Unlike mandatory life insurance, you can opt-in to protect your family’s future. This type of insurance is designed to be affordable, with lower premiums and a straightforward enrollment process.

Key Features of Voluntary Life Insurance:

  • Affordability and Accessibility: With typically lower premiums, voluntary life insurance is a cost-effective way to secure your family’s financial future. The enrollment process is usually simple, making it easy to get covered.
  • Policy Considerations: You have the option to choose between term and permanent policies. Term policies offer coverage for a specific period, while permanent policies provide lifelong coverage. Comparing different policies ensures you find the best fit for your needs.
  • Peace of Mind: Voluntary life insurance offers financial security, providing peace of mind that your loved ones will be financially secure in the event of your passing.

Comparing Costs of Voluntary Life Insurance and Term Life Policies

When considering life insurance, it’s important to compare the costs. For instance, a $100,000 policy for a 25-34-year-old typically costs $10-$20 per month from an individual insurance company, whereas an employer-sponsored voluntary life insurance might only cost $5-$15 per month. Understanding these differences helps you make an informed decision.

Exploring Voluntary Spouse Life Insurance

What is Voluntary Spouse Life Insurance?

Voluntary spouse life insurance is a financial protection plan that provides a cash benefit to your spouse upon your death. This plan is usually offered as an additional benefit through your employer and can be more affordable than purchasing an individual policy. However, it’s important to note that this coverage does not transfer if you leave your employer.

Example Scenario:

If you pay $20 per month for $100,000 in coverage, adding a spouse with $50,000 coverage might increase your premium by an additional $10-$30 per month. This results in a total of $30-$50 per month for both coverages, offering peace of mind that your spouse is financially protected.

Types of Voluntary Spouse Life Insurance:

  • Voluntary Spousal Whole Life Insurance: This type of policy covers your spouse’s entire life, providing lifelong protection.
  • Voluntary Spousal Term Life Insurance: Offers coverage for a period, typically 10 to 40 years, with lower premiums and no cash value accumulation.
What Is Voluntary Life Insurance

How We Can Help

At The Annuity Expert, we understand the complexities of choosing the right life insurance policy. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we are committed to finding the best solutions at the lowest costs for our clients. We believe in providing tailored advice that resonates with your needs and goals.

Understanding Your Needs:

We recognize that the core problem you face is securing your family’s financial future without overpaying for coverage. The symptoms of this problem include the stress of not having adequate protection and the worry about the affordability of premiums. We are here to alleviate these concerns by offering expert guidance and personalized solutions.

Voluntary Spouse Life Insurance

What We Recommend

Step 1: Schedule a Consultation

During the initial consultation, we will discuss your specific needs and goals. This step ensures we understand your unique situation and helps us tailor our recommendations. The main benefit is receiving personalized advice that aligns with your financial objectives.

Step 2: Policy Comparison and Selection

We will compare different policies, including voluntary life insurance and spouse life insurance options. During this process, we will explain the benefits and drawbacks of each policy, helping you make an informed decision. The main benefit is choosing the best policy that provides comprehensive coverage at an affordable cost.

Step 3: Secure Your Coverage

Once you select the ideal policy, we will assist you with enrollment. This includes filling out necessary forms and answering any questions you might have. The main benefit is peace of mind, knowing that your loved ones are protected financially.

Features and Benefits:

  • Personalized Advice: Tailored recommendations that meet your specific needs.
  • Affordable Coverage: Lower premiums and cost-effective solutions.
  • Comprehensive Protection: Financial security for your family.
  • Expert Guidance: 15 years of industry experience.

Common Objections:

  • “I can’t afford life insurance.” We offer affordable options with lower premiums through employer-sponsored plans.
  • “It’s too complicated.” We simplify the process and provide clear, understandable advice.
  • “I don’t need life insurance.” Life insurance ensures your family’s financial stability in your absence.

Choosing not to secure life insurance leaves your family vulnerable to financial hardships. Conversely, working with us ensures they are protected, providing you with peace of mind and security. You’ll experience relief, confidence, and satisfaction knowing you have made the right choice for your loved ones.

Contact us today for free advice or a quote.

Need Help Getting Life Insurance Coverage?

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Frequently Asked Questions

Is it good to have voluntary life insurance?

Yes, voluntary life insurance can provide financial protection and peace of mind for the policyholder and their family.

Are voluntary benefits worth it?

Yes, voluntary benefits can help reduce out-of-pocket expenses and provide additional coverage that would not be available otherwise.

What is the difference between basic life insurance and voluntary life insurance?

Basic life insurance is typically employer-provided and covers a specific death benefit. In contrast, voluntary life insurance allows the policyholder to customize their coverage, including additional benefits such as accidental death and dismemberment.

Should I get voluntary life and AD&D?

It depends on your needs and financial situation. Consider the coverage amount, cost, and other factors when deciding.

What is a good amount for voluntary life insurance?

The amount of voluntary life insurance should be based on the policyholder’s needs, such as income replacement, debts, and other expenses. A good rule of thumb is to get a policy that is 10–12 times your annual salary.

Does voluntary life insurance have cash value?

Yes, some voluntary life insurance policies have a cash value component.

Can you cancel voluntary life insurance at any time?

Yes, most policies allow the policyholder to cancel voluntary life insurance at anytime.

How to use voluntary life insurance?

Voluntary life insurance can provide financial protection for family members or business associates in the event of death or disability.

Can you keep voluntary life insurance after leaving a job?

Yes, you can keep voluntary life insurance if the policy is portable after leaving a job.

Do single people need voluntary life insurance?

Yes, single people may need voluntary life insurance if they have financial obligations such as debt or dependents to care for.

Is voluntary life insurance taxed?

No, voluntary life insurance is not taxed.

How do voluntary benefits work?

Voluntary benefits work by allowing employers to offer additional benefits to their employees that can be purchased on a pre-tax basis. These benefits can include health, dental, vision, life, and disability insurance and other supplemental coverage.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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