What is optional vs voluntary life insurance?
Asked by: Kaci Harris | Last update: August 10, 2025Score: 4.5/5 (37 votes)
What does optional life insurance mean?
Employees who are eligible for Basic Life Insurance may also purchase Optional Life Insurance coverage. Optional Life Insurance coverage can be one, two, three, four, five, six or seven times an employee's base salary up to $300,000. This amount is in addition to the Basic Life Insurance coverage amount of $50,000.
Is it worth getting optional life insurance?
Even if you don't have a family dependent on you, there are many reasons why you should consider taking out an optional life insurance policy. Several unexpected costs arise after death such as funeral expenses and burial costs, medical expenses, and other costs that normally rise into the tens of thousands of dollars.
What is the difference between basic life insurance and optional life insurance?
Basic Term Life Insurance pays $2,500 to your beneficiary upon your death. Optional Term Life Insurance provides additional coverage — up to two times your annual salary when you retired (Election 1 or 2). Maximum coverage is $400,000. The monthly premium is based on your coverage election, your salary and your age.
What is optional insurance policy?
Optional Insurance means mortgage/credit life insurance, accidental death insurance, disability insurance, unemployment insurance or any similar optional insurance covering a Mortgagor for which premiums are collected by the Subservicer.
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What is the meaning of optional insurance?
Optional insurance is workplace insurance coverage that can be purchased from the WSIB by people who are not automatically covered under the Workplace Safety and Insurance Act, 1997, (WSIA/Act). Optional insurance was previously called personal coverage.
Can you borrow from optional life insurance?
Yes, you can borrow against your life insurance policy if the plan you choose has cash value. Cash value is a portion of your life insurance payment put into a savings-like account that grows tax-free over time.
What is the difference between voluntary and optional life insurance?
Both kinds of coverage are offered through the workplace. Basic employee life insurance only provides a specific amount of coverage, but it is paid for by the employer at no cost to you; voluntary life insurance is optional coverage that you pay for.
What insurance is optional?
Comprehensive and collision are also common types of car insurance coverage, though no state requires them. These optional coverages pay for damages to your car due to fire, theft, vandalism, animal strikes, acts of nature, glass breakage, and collisions.
What happens to my voluntary life insurance if I quit my job?
Do I lose my voluntary life insurance if I leave my job? Unfortunately, the answer is usually yes. Some companies may allow you to continue contributing to a group life insurance for a specified time after you leave your job, but most coverage will simply end.
At what age should you stop paying life insurance?
Life insurance can provide peace of mind at any age, but isn't always necessary after age 60. To see if you need life insurance, assess your family's needs, your financial resources and assets, your outstanding debts and your long-term financial goals.
At what point is life insurance not worth it?
When is term life insurance not worth it? Term life insurance probably isn't worth the costs if you don't have any significant debts to pass on to your loved ones or you don't have dependents or a spouse that you'd leave in a bind by passing away.
What is a better option than life insurance?
Annuities offer better investment and income benefits while you're alive. Your return is higher because you aren't also paying for life insurance coverage. Instead, all the money is put toward an investment. Annuities also offer more income options, like guaranteed income for life.
What does optional cover mean in insurance?
This is where optional benefits in Term Insurance come into play. These optional benefits provide additional coverage that can enhance your policy coverage and provide financial security to your loved ones in case of critical illness, disability, or accidental death.
What happens if you don't use term life insurance?
No, with a standard term life insurance policy, you won't be receive anything back if you outlive your life insurance. So, what happens at the end of your term life insurance? Your life insurance will simply expire and you can either take out a new policy or look into other types of financial protection.
What is optional benefits?
Optional Benefits are supplemental benefits that employers can offer their employees. These benefits are not a requirement, but rather an option that employees can opt into. Employees can choose to pay for these extra benefits depending on their preferences and needs.
Is optional life insurance worth it?
Voluntary insurance may be an affordable option due to group rates offered by employers and can be supplemental to basic coverage. It may be a good option for those with health concerns, needing supplemental coverage, on a budget, or requiring only minimal coverage.
What is optional insurance premium?
Optional insurance is coverage that can be added to the basic coverage you have with your group plan. It's a way to increase the amount of coverage you already have, or to add benefits that aren't part of your basic plan. Optional insurance. COVERAGE THAT'S RIGHT FOR YOU.
What is an optional cover?
Optional covers are a way for you to get a particular cover that better suits your needs. They can be added to your policy for an additional premium. By reviewing available optional covers and determining their suitability, you can help ensure that your policy is able to support you when you need it most.
What is optional member life insurance?
Optional Life insurance can help protect your family's finances if something happens to you. This coverage can help provide financial support and stability to your family if you pass away. Optional Life insurance can help make things easier for the people you care about.
Does voluntary mean optional?
adjective. Voluntary actions or activities are done because someone chooses to do them and not because they have been forced to do them. Attention is drawn to a special voluntary course in Commercial French. Synonyms: optional, discretionary, up to the individual, open More Synonyms of voluntary.
Can you cash out voluntary life insurance?
You can cash out a life insurance policy. How much money you get for it will depend on the amount of cash value held in it. If you have, say $10,000 of accumulated cash value, you would be entitled to withdraw up to all of that amount (less any surrender fees). At that point, however, your policy would be terminated.
What is voluntary optional life insurance?
Voluntary life insurance is an optional benefit provided by employers that provides a death benefit to a beneficiary upon the death of an insured employee. It is paid for by a monthly premium that often takes the form of a payroll deduction. It is available to an employee immediately upon hiring or shortly thereafter.
What is the cash value of a $10,000 life insurance policy?
Say, for example, that you purchase an insurance policy with a face value of $10,000. Once the policy matures, the cash value of the policy should equal $10,000.
What is basic life vs optional life insurance?
Basic life and basic AD&D is employer paid. Optional Life and optional AD&D is employee paid. In addition to purchasing optional life and AD&D for themselves, employees may also choose to purchase optional life and AD&D for their eligible dependents.