Life Insurance Coverage
Life Happens. Life insurance is a critical protection and decision. The goal for most families is to provide a continuation of a lifestyle in the event of an early death. Life insurance proceeds can be used for a variety of needs including replacement of salary, a mortgage payment, continued education, and many other cash needs. Members are provided coverage for $75,000 with $5,000 for accidental death or dismemberment. The Pension Fund includes a death benefit of $12,000. You may purchase additional coverage through Prudential Life or investigate private life insurance carrier product offerings. Depending on your financial situation one option we educate members on is a return of premium term life policy. This type of life insurance product provides the necessary protection but has the added benefit of getting money back after the end of the term. |
Private insurance that you purchase for additional comes in several types.
Term Life Insurance
Term covers you for a period of years, with a level premium, gives you the ability to convert to permanent if you desire. Generally, the least expensive way to provide the security .
Term Life Return of Premium Life Insurance
All of the premiums are returned to you at the end of the term. We find that this provides the necessary protection but has the added benefit of getting that money back after the end of the term. Essentially having the coverage for free.
Permanent Life Insurance
Permanent life insurance provides coverage for life. Many of these policies grow in cash value, may be borrowed against, provide living benefits if you become critically ill. There are several types of permanent life; including whole life, variable life, variable universal life and indexed universal life, and final expense.
All individual policies will require underwriting, they will look at your health and assess the risk. You may be rated up or down depending on the specifics. It is cheaper to get this insurance when you are young and healthy. Life insurance benefits are paid tax free to the beneficiaries. It is a great way to transfer wealth.