Spouse Optional Life Insurance is a type of voluntary life insurance that provides a cash benefit to a spousal beneficiary upon the insured’s death. This plan is offered by an employer as a benefit to employees who want to have coverage for their spouses.

Voluntary Life Insurance Overview

Voluntary life insurance is a type of insurance offered by employers that is not required, but an option that employees can choose to enroll in if they want coverage. It typically has lower premiums than other types of life insurance, making it an affordable way to get coverage. It can provide financial protection and peace of mind for the policyholder and their family.

There are two types of voluntary life insurance: voluntary whole life and voluntary term life (group term life insurance). Voluntary whole life insurance covers the entire life of the insured, while voluntary term life insurance provides coverage for a set number of years. Premiums for voluntary term life insurance remain constant throughout the policy period but may rise after it expires.

Spouse Optional Life Insurance

Voluntary spouse life insurance is a financial protection plan that provides a cash benefit to a spousal beneficiary upon the insured’s death. The employee pays monthly for this plan, and in exchange for this, there will be money given to their spouse if they die. If the employer offers it as a benefit, it is cheaper than going out and buying individual life insurance. However, the coverage does not follow the employee if they leave the company.

Voluntary spouse life insurance can be either voluntary whole life or voluntary term life, depending on the employer’s plan. Voluntary whole life insurance covers the entire life of the employee’s spouse, while voluntary term life insurance provides coverage for a set number of years.

Benefits of Spouse Optional Life Insurance

Spouse Optional Life Insurance can help ensure that your spouse is taken care of financially if something happens to you. It provides financial protection for family members or business associates in the event of death or disability. 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.

Conclusion

Voluntary life insurance, including spouse optional life insurance, is a great way to protect your loved ones if something happens to you. It can provide financial protection and peace of mind for the policyholder and their family. If you are considering voluntary life insurance, compare the different policies available to find one that meets your needs. Contact a financial professional for a quote and learn more about voluntary life insurance benefits.

Optional Life Insurance (Optional Life) is an additional insurance option available to employees and eligible dependents. It increases the amounts paid as part of existing Life or Dependent Life Insurance policies. Individuals can apply for a combination of Life and Optional Life up to the overall Life Insurance maximum. The maximum is usually based on the size of the employer.

To apply for Optional Life, speak with your Advisor or Plan Administrator. You will need to submit medical evidence for all amounts of Optional Life. The Insurer will add Optional Life to your policy if you are approved, and you will see the appropriate deductions removed from your paycheck.

Optional Life is also available to spouses, usually up to a separate maximum determined by the Insurer. However, dependent children are not eligible for Optional Life but may be covered under Dependent Life Insurance.

Increasing Life Insurance payments through Optional Life makes sense for demographics and life stages where additional protection is needed. For example, a married person with children who rely on them to provide an income may want to consider Optional Life. If they were to die, the family would be left without a source of income, and paying for living expenses would become challenging.

For instance, Beth used Optional Life to better protect her family. Beth started working at a small tech startup at the age of 23 and was offered a Life Insurance policy for $50,000. At that time, Beth was young, healthy, and single, so she didn’t think much about the policy. But after ten years, Beth got married, had two children, purchased a new home and two cars, and had several debts to pay off. Beth realized that $50,000 was not enough to cover expenses and protect her family financially. She spoke with her Plan Administrator and applied for Optional Life. She was approved for $750,000, for a total of $800,000 when her original Life Insurance policy was included. This amount could cover the family’s existing debts and allow them to maintain their standard of living in the event that Beth was no longer able to provide for the family.

Optional Life Insurance provides additional protection to employees and eligible dependents. To know more about Optional Life, speak with your Advisor or Plan Administrator.

Term life insurance is a contract between the policy owner and the insurance company. The owner agrees to pay a premium for a specific term, and in return, the insurance company promises to pay a specific death benefit to a beneficiary upon the insured’s death. The death benefit is usually tax-free. Before getting a policy, the provider assesses the risk to insure the policy owner through the underwriting process, which includes a medical exam and evaluation of occupation, lifestyle, and hobbies. The policy owner needs to choose the term length and death benefit amount and name the beneficiaries.

There are different types of term policies, and some offer optional features, such as convertibility, which allows the policy owner to change the term insurance into a permanent whole life policy later on without a new medical exam. The chart below lists some of the important differences between basic term life and whole life insurance.

When shopping for term life insurance, the policy owner should compare rates from different sources and consider the company’s reputation and customer reviews. It’s also essential to determine the actual need for coverage, which can be estimated using different methods, such as income replacement, debt coverage, and education expenses. A financial professional can help guide the policy owner through the process of calculating the actual need and choosing the best policy within their budget.

It’s crucial to buy life insurance as soon as possible because the longer policy owners wait, the more they’re likely to pay. Generally, when a term life policy ends, the policy owner needs to buy another policy at a higher cost or go without life insurance unless the policy has a guaranteed renewal clause. Optional features, such as convertibility, can provide flexibility and help policy owners adapt to changes in their health, lifestyle, and financial circumstances.

If you are already covered under the VRS Group Life Insurance Program, you have the option to purchase additional coverage for yourself, your spouse, and dependent children through the Optional Group Life Insurance Program. This type of insurance provides coverage for both natural and accidental death or dismemberment. You can easily increase, decrease or cancel coverage online through Securian Financial via myVRS.

Coverage Options

There are eight coverage options available for yourself with a maximum coverage of $800,000. For your spouse, you can choose coverage up to twice your creditable compensation, not to exceed $400,000. Coverage for your spouse will cease if you or your spouse divorce or if you are both eligible to participate in the Optional Group Life Insurance Program. Dependent children aged at least 15 days old can be covered for $10,000, $20,000, or $30,000, depending on the coverage option you select for yourself. Coverage will end when your child marries, becomes self-supporting, reaches age 21, or reaches age 25 as a dependent attending college full-time. Dependent unmarried children who are disabled can continue to receive coverage.

For those who have enrolled in the Optional Group Life Insurance Program within 31 days of their employment date, proof of good health is not required. However, if you are already enrolled and qualify for retirement, you may continue a part of your coverage upon leaving employment. You can reduce or cancel optional coverage online if necessary.

Optional Life Reduction Rates

Reduction rates will apply to your coverage based on your age and the plan you have chosen. The plan offers three levels of reduction:

*Social Security Retirement Age

For those enrolled in the optional plan but unable to continue coverage when they retire or defer retirement, a conversion to an individual policy is possible within 31 days of leaving your position. Proof of good health will not be necessary, and premiums will be billed directly to you.

For more information about naming a beneficiary, moving, retiring, or making family changes, contact Securian Financial at 1-800-441-2258 or visit the VRS website.

Optional Life Insurance (Optional Life) provides additional protection and insurance to employees and eligible dependents by increasing the amounts paid as part of existing Life or Dependent Life Insurance policies. An individual can apply for a combination of Life and Optional Life up to the overall Life Insurance maximum, which is usually based on the size of the employer.

To apply for Optional Life, speak with your Advisor or Plan Administrator. They can provide you with the required forms and guide you through the process. You’ll need to apply for the optional coverage through your Insurer and supply medical evidence to determine eligibility. If approved, your Insurer will add Optional Life to your policy and the appropriate deductions will be removed from your paycheck.

Optional Life is also available to spouses up to a separate maximum determined by the Insurer. Dependent children are generally not eligible for Optional Life, but may be covered under Dependent Life Insurance.

Life Insurance is a good benefit to have, but increasing Life Insurance payments through Optional Life makes sense for certain demographics and life stages. For example, a married person with children who rely on them to provide an income may want to consider Optional Life to ensure their family is financially protected.

An example of Optional Life in action is Beth, a 23-year old single woman who has just started working at a small tech startup. Her Life Insurance policy through her employer covers $50,000. Ten years later, after getting married, having children, and purchasing a home, Beth realizes that this amount is not enough to cover expenses and protect her family financially. She speaks with her Plan Administrator and is approved for Optional Life Insurance of $750,000, for a total coverage of $800,000 when her original Life Insurance policy is included. This amount would cover her family’s existing debts and allow them to maintain their standard of living in the event that Beth was no longer able to provide for the family.

Overall, Optional Life Insurance provides additional protection and insurance to employees and eligible dependents by increasing the amounts paid as part of existing Life or Dependent Life Insurance policies. Speak with your Advisor or Plan Administrator to determine if Optional Life is right for you.

Employer-provided life insurance is group term life insurance that may be offered as part of your employee benefits package. If available, it is an option for all of a company’s employees.

While basic employer-provided life insurance is usually low-cost or free, and you may be able to buy additional coverage at low rates, your policy’s coverage may not be enough to meet your needs. Many employers provide employees with about $50,000 to $100,000 worth of coverage, or about a year’s salary.

If you have dependents who rely on your income, then you may require additional coverage to provide for their needs in the event of your death. Some experts recommend getting coverage worth five to 10 times your salary.

If the coverage you are receiving from the group plan is not enough, you may want to consider purchasing life insurance outside your employer. A common rule of thumb is to have five to 10 times your annual salary in coverage. Another reason for an outside policy is that if you leave your employer, you will likely be uncovered.

Life insurance needs are unique to an individual’s financial situation, including their dependents and budget. One way to determine how much coverage you need is to multiply your annual salary by a certain factor. Many financial advisors recommend about five to 10 times your annual salary in coverage.

Depending on your circumstances, you may want to buy additional coverage. In general, aim to buy the most insurance for your needs that you can afford at the youngest age.

Optional Life Insurance (Optional Life) provides additional protection and insurance to employees and eligible dependents by increasing the amounts paid as part of existing Life or Dependent Life Insurance policies. To apply for Optional Life, speak with your Advisor or Plan Administrator. They can provide you with the required forms and guide you through the process. You’ll need to apply for the optional coverage through your Insurer and submit medical evidence to determine eligibility.

An individual can apply for a combination of Life and Optional Life up to the overall Life Insurance maximum. The maximum is based on the size of the employer. For example, if your workplace has ten employees, you may qualify for a combined Life and Optional Life Insurance maximum of $850,000. Optional Life is available to your spouse as well, usually up to a separate maximum that may differ based on your Insurer. Dependent children are not eligible for Optional Life, but may be covered under Dependent Life Insurance.

Life Insurance is a good benefit for just about anyone to have. However, demographics and life stages where increasing Life Insurance payments through Optional Life makes sense. For example, a single individual living alone may not see the need to increase their Life Insurance policy beyond enough to cover funeral services. However, a married person with three kids who rely on them to provide an income may want to consider Optional Life.

Let’s look at Life and Optional Life Insurance in action with an example. Beth is a 23-year old girl, who has just started working at a small tech startup. As part of her total compensation package, Beth is offered group benefits, including a Life Insurance policy for $50,000. She is informed that she can apply for a combined maximum of Life Insurance and Optional Life Insurance which is based on her company’s size. Beth submits medical evidence as part of her application and is approved for Optional Life Insurance of $750,000, for a total of $800,000 when her original Life Insurance policy is included.

Although they hope never to use it, Beth and her husband are secure in the knowledge that their family would be financially protected in the direst of circumstances.