Understanding the need for life insurance

One of the most important parts of a family’s financial plan is life insurance, which can help keep a family on its feet during a very difficult period.

How much coverage a person should have depends on the individual’s circumstances. But if a person has recently gone through a major change, such as a home purchase or a new child, it’s a good idea to update one’s coverage to reflect the family’s changing needs.

One of the most popular options is term life insurance. This is often referred to as pure insurance because it has no savings/cash value features. Term life policies generally have the lowest annual premiums, although premiums can increase as the insured ages.

The UUP Benefit Trust Fund provides $6,000 of term life insurance to active bargaining unit members and $1,000 to retired members. Members and their spouses or domestic partners under age 65 are also eligible to apply for up to $500,000 in NYSUT Benefit Trust-endorsed term life insurance. Coverage of $10,000 for dependent children is also available.

NYSUT Term Life Insurance also features an accelerated death benefit, which allows terminally ill insureds to receive a portion of their benefit to help pay medical costs or maintain financial security.

One convenience of the NYSUT-endorsed plan is the ability of eligible members to pay for coverage through payroll deduction. Effective Sept. 1, payroll deduction yields a 10 percent discount on premiums. This is in addition to the free travel accidental death and dismemberment insurance benefit of up to $100,000 available to members using payroll deduction.

For more information, contact NYSUT Member Benefits at (800) 626-8101, e-mail to benefits@nysutmail.org or visit the Web at http://www.memberbenefits.nysut.org.