A reflection of the changing economy of the last decade can be found in the evolved attitudes many people have toward insurance. Today, even people who are young, unmarried, or childless seem to have an increased interest in securing financial protection in the event of death. Yet, while the interest is often there, the time and energy to follow through may not be. There always seems to be something else that comes first: Namely, bills, day-to-day activities and expenses.
There is a convenient way to obtain insurance coverage that has gained enormous popularity. More and more business owners have been making insurance products available to their employees through Voluntary Payroll Deduction (VPD) programs. With a VPD program, an agent from a reputable insurer comes to the employer's place-of-business to offer employees the opportunity to purchase individual life plans. This can be invaluable to employees who have not yet purchased the financial protection they (or their families) need.
There are several benefits to purchasing insurance through Voluntary Payroll Deduction. First of all, the sales presentation takes place during the business day. One of the biggest challenges facing many people today is a schedule crammed with things to do, and not enough time to do it all. With a constant focus on what needs to be done today, it's easy to postpone something that we can "always worry about tomorrow" like getting insurance. Unfortunately, too often, tomorrow never comes, and an unforeseen event does. Voluntary Payroll Deduction allows you to take the right steps today, so you don't have to "worry" about tomorrow.
Another advantage of Voluntary Payroll Deduction is the convenience. As the name implies, the premiums for the insurance are automatically deducted from your paychecks before you receive them. And it's true: you really don't miss what you don't see. Without having to write a check up front, the buying experience becomes relatively painless. And it's one less bill to have to remember to pay, each month.
Also, as part of a VPD program, you may be eligible for protection that you might not be able to get on your own. Unlike many individual life insurance plans, VPD programs often have fairly liberal underwriting requirements. Equally important, policies purchased under a VPD program are competitively priced.
Although VPD programs are set up for a group, they are still individual policies: Coverage purchased under a VPD plan is portable. Since you own the policies, you can take the coverage with you if you leave your job for any reason. This also applies to coverage purchased through the plan on spouses, children even grandchildren.
For all of these reasons, purchasing life insurance coverage through VPD arrangements is a great opportunity for just about anyone. If you have had the option to do so at your workplace, and have not taken advantage, you may want to reconsider your decision. If you have not had this type of coverage made available to you at the workplace and feel that your employer would be receptive to exploring such a plan why not bring it up for discussion?
Your participation in a payroll deduction insurance program is completely voluntary. Since the program is not intended to be subject to the Employee Retirement Security Act of 1974 (ERISA), your employer cannot contribute to or endorse this program.
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|Voluntary Payroll Deduction: A Convenient Way to Get Insurance Coverage|