Dependent Life Insurance Premiums – What Factors Affect Your Rates?
Dependent life insurance policies allow several people to be insured as beneficiaries, while only one person is listed on the policy. Most such policies provide a very large payout, often to the whole family, or to just a single individual. This is a particularly useful policy for those who live alone or are divorced, or have some other significant family tie to deceased family members. However, it can also be quite costly. It is also a good idea to periodically review your coverage and consider raising the deductibles and premiums to get the best value out of your policy.
There are several types of dependent life insurance that fall into several different categories. One is “occasional coverage,” which provides coverage when you are not working for your employer. You typically need this type of coverage, if you have some sort of job and spend part of your time outside your employer’s office. If you work at an establishment that provides you with regular employment, you may be offered coverage in addition to the occasional or covered job.
Often, however, dependent life insurance is required by the employer. For those employees who do not work for the company and still need coverage, open enrollment is often the most appropriate route to go. Open enrollment allows you to shop around among several insurers to find the most competitive premiums and the lowest cost of coverage. The benefits are more clearly defined, and it is easier to compare quotes with all of the information right at your fingertips. However, it is important to remember that the cost of insurance will depend on your age and the health history of your entire family.
Once you have determined which type of dependent life insurance you need, you will have to decide what coverage options will work best for you. Many policies provide coverage for a spouse and children up to age 22. Coverage options can vary depending on the plan, the age of the primary insured and the number of dependent children you wish to cover. Typically, the plans will include coverage for those who start working within one year of the date of coverage.
How long does it take for an employee to become eligible for dependent life insurance? Coverage becomes available on the employee’s first birthday through an accidental death benefit. If your child is younger than 22, coverage is available as long as your child starts college on the date you become eligible to enroll. If you become eligible to enroll but your child is older than 22, the plan will be subject to the COBRA laws, which allow you to get coverage for your child if he or she would not otherwise be eligible to enroll. Coverage will end as your child reaches the age of 25.
To determine whether you are eligible for dependent life insurance, you must be sure that you are living and working with the right person. Spouses and partners are always included in a joint account and the benefits are transferred automatically from the account to each spouse. However, this is not the case for same-sex married couples. Same-sex married couples cannot choose dependent life insurance on their own. This means that they must seek coverage from the employer who provides it for the opposite sex.
How long do you have to wait before you can actually begin the application process? Dependent life insurance policies are generally open enrollment. You can begin the application process immediately, but you may have to wait up to six months before you actually have access to the policy. There may also be a waiting period during which you cannot apply for coverage. For most policies, this waiting period will be around six months.
Do not let your premiums go through the roof because you did not plan for them. Some employers offer these policies as part of a group insurance package. If you and your spouse are part of a small group, most employers offer dependent life insurance rates that are lower than those offered to employees who are not part of small groups. Before purchasing dependent coverage, make sure you understand what your premiums will be and how they will be affected by any employer contributions that you make.