Life Insurance for Tech Diving

[bl6394]

...
Now, as an employee your cost may be less if the employer is contributing to the cost of your premium. ...

As stated, my employer is bearing the full cost of my group life policy premium (1X Salary).

I wonder how much of the Supplemental Life they are subsidizing - if any. If the fair market value for a 4 X Salary Individual Life policy is $5000 / year - I doubt my company is subsidizing the additional $4400 for my supplemental coverage (less the value of my 1X Group Life product.)

I'll ask my HR rep tomorrow.

 

[CuzzA]

As stated, my employer is bearing the full cost of my group life policy premium (1X Salary).

I wonder how much of the Supplemental Life they are subsidizing - if any. If the fair market value for a 4 X Salary Individual Life policy is $5000 / year - I doubt my company is subsidizing the additional $4400 for my supplemental coverage (less the value of my 1X Group Life product.)

I'll ask my HR rep tomorrow.

I would be surprised if they are supplementing the cost of the supplemental insurance.

An important question to ask is what happens if you were to quit or be terminated from your job?

 

[KeithG]

...

Now, the company has all the important data to assess the risk. An underwriter looks at your complete profile and follows the company guidelines to determine the rate class. Because they know the risk they are taking they can offer policies much cheaper than they could if they didn't have that information, assuming you are health.

Interesting. I will have to grill my SO on this concept.

Maybe my exposure is dated and I still cling to the concepts of Adverse Selection: you can hide you problems in a group plan, but Individual coverage exposes all of your sins. I am unaware of Insurance companies lowering your premiums because they know more about you. Healthy non-smoker is as good as it gets. After that every thing you reveal goes down hill...

 

[KeithG]

I would be surprised if they are supplementing the cost of the supplemental insurance.

An important question to ask is what happens if you were to quit or be terminated from your job?

Agreed - from your description it sounds like they have sold you an individual specific rider attached to the group policy. I would be surprised if the company assumed the premiums. Have you checked your payroll deductions?

 

[bl6394]

I would be surprised if they are supplementing the cost of the supplemental insurance.

An important question to ask is what happens if you were to quit or be terminated from your job?

Back onto the market. $$$

Frankly, I was pleased to get this coverage at the cost offered. They covered me despite disclosing both aggressive tec diving and a private pilot's lic. I have two dependent children - and my risk is considerably greater than the non-diving / recreationally diving public.

 

[natedawg4081]

I recently got a $250k individual policy and the monthly cost is reasonable (less than $100 a month) and was a bit higher just for me doing scuba diving but since am not tech diving yet (in process of getting certified) they said I would be covered for any activities after the policy went into effect without any fee increases for 20 years, that would include tech diving since am not doing it currently. Pacific Life was the company I went with. I also have the max group life with my company ($150k without any additional forms to fill out), DAN accident insurance as well as AFLAC accident insurance.

 

[Michael Guerrero]

If only I had secured additional insurance a few years ago.

 

[Superlyte27]

I write policies for large companies. A policy per person on a company is significantly cheaper than on an individual. For example:who can get 7 times multiple of your income for $8/month as an individual? No one.

In order for a company to get benefits, they provide a census to us. That gives us age and gender. Two huge qualifiers to generate rate. BUT, also keep in mind that an employer plan is the shortest Term policy anywhere. It only pays out about .0001℅ of the time. Why? Because if you get fired, quit or retire, the policy is gone. It's money in the bank for us. Sure, we have to take the good with the bad, but you're going to quit your job in three years anyway.

 

[CuzzA]

I write policies for large companies. A policy per person on a company is significantly cheaper than on an individual. For example:who can get 7 times multiple of your income for $8/month as an individual? No one.

In order for a company to get benefits, they provide a census to us. That gives us age and gender. Two huge qualifiers to generate rate. BUT, also keep in mind that an employer plan is the shortest Term policy anywhere. It only pays out about .0001℅ of the time. Why? Because if you get fired, quit or retire, the policy is gone. It's money in the bank for us. Sure, we have to take the good with the bad, but you're going to quit your job in three years anyway.

But wouldn't you agree that "all things being equal", group life is actually more expensive. Annual renewable term is cheap, until it's not cheap anymore.

 

[Superlyte27]

I think both are junk.

But $8/mo is cheaper than $100/mo. You get what you pay for.