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Jul 11, 2023 · Typically, dependent life insurance policies limit coverage to the funeral and burial expenses of the insured. The average cost of a funeral with a viewing and burial is $7,848, according to the ...
- What Is Dependent Life Insurance?
- Who Qualifies For Dependent Life Insurance Coverage?
- Who Is The Beneficiary?
- Value-Added Options
- Tax Implications For Dependent Life Insurance
- Should You Offer Dependent Life Insurance?
Dependent Life Insurance is an employee sponsored benefit that provides a lump sum of money to an employee in the event of the death of one of their dependents. The employer can choose how much they would like the benefit amount to be, and coverage is usually provided in conjunction with Life Insurance. As with Group Life Insurance, protection is g...
As the name implies, only dependentsare eligible for coverage under this type of benefit. Dependents include a spouse (both by marriage and common-law) as well as children under a specified age – under 19, or under 21 are common ages. Overage dependents as well as disabled dependents who qualify for health and dental, also qualify for Dependent Lif...
Under Dependent Life Insurance, the beneficiary is alwaysthe employee. This is because the benefit is set-up as monetary protection for employees should the worst occur. The intent is for employers to support their employees. Thus, allowing them to appoint a different beneficiary could defeat the purpose of the coverage.
Premium Waiver
Depending on the other group benefits offered by the employer, some plans will provide a waiver of premium option. This means that if a totally disabled employee has been approved for a waiver of premium under the Life Insurance benefit, the premium for their Dependent Life Insurance benefit will also be waived.
Pre-Natal Benefit
Some insurance plans have built-in extras. For example, the Pre-natal Benefit provides plan members with a benefit amount following a stillbirth. The amount is usually the lesser of the actual amount for the funeral expense or the amount of the Dependent Life Insurance for which a child is covered. Check with your provider to see if there are any value-adds in your plan. If your benefits are administered by us, you can check for other enhancements as well.
For the Employee
If the employer is paying for the premiums, thosewould be considered taxable income for the employee, regardless of whether or not the benefit is needed. The dependent life insurance benefitis provided tax-free. Therefore, it should not be added as taxable income when doing a tax return for the beneficiary (employee).
For the Employer
Likewise, the premiums paid by the employer for the coverage is a tax-deductible business expense. The cost of Dependent Life Insurance through a group benefits plan is usually quite nominal. Costs range from just under a dollar, to just over two dollars.
When people think about Life Insurance, they are usually considering their own death. They want to safeguard the family they might leave behind. But what happens if they are the ones left behind? How does Dependent Life Insurance help? With 56% of Canadians having no plans to purchase additional coverage outside of what is offered by their employer...
Jan 10, 2024 · Voluntary dependent life insurance, also called dependent group life insurance, is often available as part of a benefits plan through employers. Dependent insurance can cover your spouse, children and other eligible dependents, according to the plan's rules. The employee is automatically designated as the beneficiary, so if a covered dependent ...
- Maxime Croll
Jun 6, 2024 · Dependent policies provide a death benefit payout if a covered dependent passes away. The coverage is usually much lower than individual life insurance – Dependent Life coverage typically includes options such as $5,000 for a spouse and $2,500 per dependent child, or $10,000 for a spouse and $5,000 per dependent child.
Jun 20, 2024 · Dependent life insurance offers a payment, known as a death benefit, if a covered spouse or child dies. It covers funeral expenses and costs of losing a non-income-earning spouse. Dependent life ...
- Henry Blodget
The most common amounts of Dependent Life coverage are $5,000 for a spouse and $2,500 per dependent child or $10,000 for a spouse and $5,000 per dependent child. However, coverage for higher amounts is often available. Optional Life. The Optional Life benefit allows employees to supplement the life insurance coverage provided by their benefit plan.
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May 19, 2024 · Dependent life insurance is a type of insurance policy that pays out for the death of a spouse, child, or other dependent. This type of policy is usually purchased to handle final expenses, and the amount of coverage can be relatively small. While it’s easy to think that the death of a stay-at-home spouse or child won’t become a financial ...
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related to: what is dependent life insurance meanChoose Guaranteed Whole Life Insurance from United of Omaha Life Ins Co today. Funeral Costs Can Be Stressful If You're Unprepared. Help Secure Your Financial Future!
1216 Lexington Ave, Mansfield, OH · Directions · (419) 756-8777
