Term Life Insurance Articles
Does Your Life Insurance Provider Offer Death Benefits Beyond A Payout
2009-12-25
There is perhaps no event more traumatic than the death of a loved one, especially if that one was a spouse or child. In many cases, a life insurance policy taken out for the deceased will provide either a lump sum payout to the beneficiary or a series of regular fund disbursements, but precious little else. While these funds can be useful, money alone is not enough to deal with many of the challenges presented by the death of a family member.
Any term life insurance or whole life insurance policy will come with a specified amount which will be paid upon death, provided the death meets with the criteria laid out in the policy holder's agreement. In the case of term life insurance coverage, this death benefit can be quite large, especially at the beginning of the term. While money can ease the immediate burden of a sudden loss of income, there are many other, less tangible needs that also require addressing. It is worth investigating exactly what kind of coverage is provided after death by an insurance company, whether it be a private policy or one obtained through an employer. These policies vary quite dramatically, and many employers have begun to shift away from the traditional payment model to include other, holistic services as benefits to their members, according to a May 19, 2009 article in the Wall Street Journal.
As a result, several large agencies, including ING, Prudential Financial and the Hartford have began offering what they term "end-of-life" rather than death benefits in their group insurance plans. These benefits can cover such things as funeral planning and costs, counseling for the bereaved and will-preparation services. According to Bradley Johnson, Vice President of product management for employee benefits at ING, "with a plan like this in place, employers have a tangible way to show their employees how much they are valued on both a personal and professional level".
Even the costs of such programs have been fairly minimal, ranging from $1 a month for those employees under Prudential's banner, to no increase at all for members of the Hartford, and there is certainly a desire for such programs according to the Benefit Landscape Study conducted in 2009 by the Hartford itself, which found that 4 out of 5 employees said it would be "helpful to have funeral planning, will preparation and estate planning services available through their employers." This change in life insurer attitudes means that for those with a plan in place that includes end-of-life benefits, an extremely difficult time will be made less so as administrative details are handled by others, and the bereaved can be left to celebrate the deceased's life and mourn their passing.
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There is perhaps no event more traumatic than the death of a loved one, especially if that one was a spouse or child. In many cases, a life insurance policy taken out for the deceased will provide either a lump sum payout to the beneficiary or a series of regular fund disbursements, but precious little else. While these funds can be useful, money alone is not enough to deal with many of the challenges presented by the death of a family member.
Any term life insurance or whole life insurance policy will come with a specified amount which will be paid upon death, provided the death meets with the criteria laid out in the policy holder's agreement. In the case of term life insurance coverage, this death benefit can be quite large, especially at the beginning of the term. While money can ease the immediate burden of a sudden loss of income, there are many other, less tangible needs that also require addressing. It is worth investigating exactly what kind of coverage is provided after death by an insurance company, whether it be a private policy or one obtained through an employer. These policies vary quite dramatically, and many employers have begun to shift away from the traditional payment model to include other, holistic services as benefits to their members, according to a May 19, 2009 article in the Wall Street Journal.
As a result, several large agencies, including ING, Prudential Financial and the Hartford have began offering what they term "end-of-life" rather than death benefits in their group insurance plans. These benefits can cover such things as funeral planning and costs, counseling for the bereaved and will-preparation services. According to Bradley Johnson, Vice President of product management for employee benefits at ING, "with a plan like this in place, employers have a tangible way to show their employees how much they are valued on both a personal and professional level".
Even the costs of such programs have been fairly minimal, ranging from $1 a month for those employees under Prudential's banner, to no increase at all for members of the Hartford, and there is certainly a desire for such programs according to the Benefit Landscape Study conducted in 2009 by the Hartford itself, which found that 4 out of 5 employees said it would be "helpful to have funeral planning, will preparation and estate planning services available through their employers." This change in life insurer attitudes means that for those with a plan in place that includes end-of-life benefits, an extremely difficult time will be made less so as administrative details are handled by others, and the bereaved can be left to celebrate the deceased's life and mourn their passing.
