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Voluntary payroll deduction: A convenient way to get insurance coverage

It’s Permanent and Portable

Today, even people who are young, unmarried, or childless seem to have an increased interest in securing financial protection. While the interest is often high, 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.

To help their employees, more and more business owners are 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 policies. 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 purchasing life 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 paycheck.* 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.

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 policies, under VPD programs, the underwriting requirements can often be fairly liberal. Equally important, policies purchased under a VPD program can be competitively priced.

Although VPD programs are set up for a group, they are still individual-owned 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 programan 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 an option — why not bring it up for discussion?

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