We just came out of open enrollment, and our enrollers fielded lots of questions about how supplemental insurance works. May’s B&G detailed the benefits of having FRBT’s Accident Champion plan. In the last issue, we covered the need for hospital coverage and critical illness insurance. Our final installment deals with life insurance.
We were asked many times: My employer provides me with life insurance and I can choose to increase that. Why do I need outside coverage?
The City of Houston DOES provide you with life insurance in the amount of 1 year’s salary, and you can choose to multiply that. However, because it’s considered Group Coverage, you are only eligible for it as long as you are a city employee. If you retire or if you leave the department, you are no longer part of the group and your coverage is cancelled (even if you’re paying to increase it).
The Lifetime Benefit Term plan from FRBT is considered permanent insurance. Whereas most term plans will only cover you for 20-30 years, this policy is valid to age 121. Maximum policy amount is $250,000. But this plan doesn’t just protect your loved ones in the event of your death – it helps protect your financial future in the event that you require long term care. If you find yourself in that situation and you meet the requirements, you can utilize living benefits attached to this policy, as well – whether that means being confined to a facility, adult day care, or even home nursing care. In addition, there’s a terminal illness rider that allows you to receive half of your face benefit amount in the event that you are diagnosed with a terminal illness.
This policy offers level premiums, which means you do not have to worry about your premium going up as you get older. You lock in your premium at your current age, and it won’t increase.
Spouse coverage is available, as is life protection for your children under the age of 26.
If you’d like more information on this plan or would like to discuss premiums, please reach out to Yvonna Lex at email@example.com with your questions.