Write Your Life Insurance In Trust
Reassured offer a free trust writing service for the majority of life insurance policies we sell.
This process allows you to place someone you trust in charge of your life insurance policy.
The trustee will then manage the pay out and distribute the funds according to your wishes, similar to the executor of a will.
Why write your policy in trust?
- Avoid 40% inheritance tax
- Avoid the probate process
- Have better control of your policy
Why Is Life Insurance Important For Police Officers
Lets start with an important and confirmed statistic from Officer Down Memorial Page . In 2020, 359 police officers were killed in the line of duty, of which, 332 were men and 27 were women.
Now, compare those stats with the number of people who died as a result of a car accident in 2020 which is 1.36. Certainly, many of those accident victims may have been police officers, but youll likely understand one risk compare to the other.
Whether a police officer dies on duty protecting the public or as a result of a disease or in an unrelated job accident, they must have life insurance so that loved ones will not be financially devasted after a loss.
The risky issues that police officers must deal with while on the job are more than the average employed individual must deal with:
Joint Life Insurance For Police Officers
protects two lives simultaneously .
Youll pay one premium, and the policy pays out only once upon the first or second death.
Generally, a joint policy can save you approximately 25%, compared to two single policies.
Although, a joint policy may not be suitable if youre a police officer with high-risk responsibilities.
This is because the circumstances of your job may bump up the premium, impacting both parties.
Therefore, this type of cover may be more suited to police officers with low-risk responsibilities who can take full advantage of joint policy savings.
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Are The Life Insurance Policies Provided Through Work Enough For Police Officers
In a nutshell, no. Unless an officer is single and there are no children. Although employer-sponsored life insurance is a great benefit to take advantage of, it will fall short of your surviving loved ones financial needs if that is the only life insurance an officer has.
There are three primary drawbacks to employer-sponsored life insurance:
Group Term Life Insurance
Employees can buy Basic or Limited Basic Life Insurance. If an employee buys Basic life insurance, then they can also buy Supplemental Life Insurance for themselves and eligible family members.
Basic Group Term Life Insurance
Employees can buy Basic Group Term Life Insurance equal to one and one-half times their annual salary, or they can buy Limited Basic Life Insurance. The Limited Basic Life limits coverage amount to $50,000, regardless of salary. It provides some coverage, without creating taxable income. The City pays 40 percent of the premium cost the employees pay 60 percent through payroll deduction, via the second paycheck of each month for the subsequent month’s coverage.
Employees are guaranteed coverage with basic life insurance if they enroll within 30 days of their hire date or the date they become eligible. If an employee waits to enroll themselves or dependents until open enrollment, they’ll each have to complete an Evidence of Insurability that can be denied or approved, for any coverage amount. Employees may complete Evidence of Insurability and submit online here.
Supplemental Group Term Life Insurance
Family Status Change: Life Insurance Options
Employees may enroll or increase their coverage within 30 days of the Family Status change up to the Guaranteed Issue amount. Employees may contact the Benefits Unit at for enrollment instructions.
Calculating the Cost of Group Life Insurance
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The Common Flaw In Employer
Theres another critical reason to have your own life insurance policy thats seldom considered.
If you ever leave the police department, except for retirement, youll likely lose your employer-paid life insurance.
While you may be able to purchase a private policy at that point, youll be older than you are now, which will make the policy more expensive.
In addition, if youve developed any health conditions over the years, the policy will be even more expensive, or you may not be eligible.
The best time to buy life insurance is always right now. Does that sound like an oversimplification? It isnt.
You are younger right now than youll ever be at any time in the future, and if your health is good now, you can get the least expensive policy possible. Theres no way to know what your health will be at some unspecified time in the future.
What Types Of Life Insurance Policies Are Available For Police Officers
Police officers will have the same access to life insurance products as any other individual.
Although there are quite a few types of life insurance policies available, many of them are hybrids of the basic types of insurance policies available.
Term Life Insurance
Most companies will offer term policies with policy terms of five to thirty years. And, in the last few years, several companies began offering policies with terms of up to 35 and 40 years.
Since a term policy doesnt provide permanent coverage and there is no cash component attached, term life insurance will always be the most affordable choice.
Permanent Life Insurance
Permanent life insurance guarantees a death benefit for the life of the insured as long as premiums are paid. A permanent policy also has a cash component that will build value over time and earns tax-deferred interest based on the investment performance of the insurer issuing the policy.
The two most popular permanent life insurance policies are whole life and universal life.
No Exam Life Insurance
No exam life insurance is typically term life insurance but is also available as whole life insurance.
No exam policies are generally preferred by applicants who are healthy and prefer to forgo the inconvenience and privacy issues associated with a life insurance medical exam.
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How Much Coverage Does Your Department Offer And Is It Enough
Your employer provided life insurance benefit is often not enough to protect your family. Your employer may only provide one or two times your annual salary in life insurance benefits. This is nice of them to offer this temporary protection, but it is not enough money to protect your family if you die unexpectedly.
If you are a firefighter, have a family of three at home, and yet only have $50,000 of employer-provided life insurance policy, your family is at great financial risk! $50,000 is not a very big financial safety net to make sure your family will not have to make drastic financial cuts when you die.
The Firefighters, police officers, and EMTs we work with are often looking for more life insurance coverage because they feel their current departments benefit plans do not offer enough life insurance for firefighters. They are also worried that, if they get sick, lose their job, or get injured, they will lose their employer provided life insurance plan.
The Life Insurance Cost Factors You Cant Control
Two of the biggest influences on life insurance rates are also the ones you cant control: age and sex. Typically, younger people pay less than older people because they are less likely to have health problems. As for gender, males tend to pay more for life insurance because they have shorter lifespans and are also more likely to have dangerous jobs or lifestyles, making them riskier to insure overall.
Term life insurance rates by age and sex
The chart below provides examples of the average term life insurance rates for males and females, 25 to 40 years old, quoting a 10-year term policy through eFinancial. As you can see, rates for men are higher than those for women, on average. Plus, the average rates for 25 and 30-year-olds are nearly the same, while those for 35-year-olds skew higher as a result of increasing risk.
|Coverage amount: $250,000Male: $16.31Female: $15.22||Coverage amount: $500,000Male: $26.10Female: $24.36|
Note that the above figures are based on non-smokers who are classified as preferred-plus, which generally signifies a minimal amount of potential health problems .
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Why Use An Independent Agent
Even for the normal citizens, finding the right life insurance policy has never been an easy task. Remember the market is full of insurance companies that claim to offer the best rates, thus getting one with the type of policy you want can be tricky. What is even more confusing is finding a service provider with affordable rates. That is why the involvement of a seasoned independent agent is very important.
If you are a police officer scouting for affordable life insurance, using an agent to act on your behalf is highly advisable. An experienced agent that works with multiple companies can help you locate a good insurance company with the most favorable premiums. Independent life insurance agents are properly-versed with the market, and can, therefore, find a good deal for you.
Apart from helping you get competitive rates, the agent can guide you through all the confusing issues so you can acquire the best policy with a lot of ease. Always consider working with a knowledgeable independent agent if at all you want to save time and money.
Life insurance is available to police officers just the same way it is available to everyone else. Any police officer is entitled to an affordable term, permanent and universal life insurance rates. Being a law enforcer should not disqualify you from obtaining the best life insurance coverage. By using an independent life insurance agent, you are likely to land the most competitive rates in the market.
What Are The Available Options
Just like other civilians, police officers have access to all types of life insurance policies. As stated earlier, law enforcement officers are not discriminated when it comes to acquisition of life insurance. Right from the process of application to the options available, everything remains the same. What usually changes are the rates at which their premiums are charged. But mostly this occurs on the side of their occupation.
The available types of policies are term, permanent and no-medical-exam life insurance policies. The policies are outlined below:
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Are Police Officers Covered For Death Illness And Disability Without Insurance
You may be covered for death, illness and disability without insurance through WorkCover. Workers compensation is provided by employers and can pay police officers a benefit if they get sick or injured from a work-related cause. In some cases, it can also provide disability benefits, death benefits and missed wage replacement.
However, the workers compensation that you are entitled to can differ depending on when you joined the police force and what state you work in. Unlike life and income protection insurance, there is also no guarantee that it will be enough to cover all your debts and expenses. Some other rules you should be aware of include:
- The benefit period is usually capped at 130 weeks unless you are totally incapacitated.
- It only covers you for work-related injuries and illnesses.
Do Police Officers Get Life Insurance
As mentioned, as a member of the police force, you may already receive some form of life insurance cover or through your employment.
This is likely to be a multiple of your salary that pays out in the event of your death.
However, you may find that the amount offered is insufficient for the needs of you and your family.
Particularly if you have dependents who rely on your income.
If you were no longer around, would this amount be sufficient for your family to:
- Length of cover
- Level of cover
The insurer will take these into account to assess the level of risk you pose .
Your specific role within the police force may also impact the cost of your life insurance.
For example, a firearms specialist is likely to pay higher premiums than a police officer who works mostly in an office.
Specifics of your application will be assessed differently with every insurer, which means quotes will vary.
Thats why its important to compare multiple quotes from a variety of insurers.
Save time and money by using our broker service.
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Its All About You We Want To Help You Make The Right Life Insurance Coverage Choices
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Our life insurance industry partnerships dont influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
- Police officers face a lot of risk a normal person does not, many officers think that this risk would make their life insurance unaffordable
- Most police officers are offered some sort of life insurance benefit through their job, but are unaware that it may not cover everything
- Some insurance providers even offer police officers discounts
Police officers have a tough job. One that often puts them in high-risk situations. As a result, many police officers think they cant afford life insurance. However, this is simply not true.
Enter your ZIP code and start comparing life insurance rates for police officers today. Dont wait to make sure you and your family are fully covered.
Utah Widows Payout Rejected In Husbands Cop Shooting Case
Heres how the story unfolds.
Vincent Farrand took out a life insurance policy with AIG in 2011 with a face value of $500,000.
He named his wife Molly Farrand as beneficiary.
In 2014, which was 3 years later, police were called to the couples residence. Mr. Farrand appeared to be intoxicated and was carrying a handgun. Police allege they told him several times to drop the weapon.
While walking toward a gate in the backyard, police contend he continued to carry the gun and was mumbling something similar to Shoot me. Youre going to have to shoot me. Farrand was eventually shot and killed by police.
The autopsy of Mr. Farrand also revealed that he had 0.21% alcohol content at the time of his death.
Molly Farrand contends that her husband was in the process of lowering the weapon. It should be noted that it is legal to carry a handgun in Utah because it is an open carry state. She filed a civil action against Centreville for $2 million dollars.
The municipality settled out of court for $127,000 but made clear that it did so with no admission of fault of the part of the police officer.
Ms. Farrand submitted her life insurance claim to American General who denied the claim.
In a letter to her dated August 18, 2014, the company claimed that her husband was suicidal and legally impaired.
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Who Receives Your Life Benefit
This form allows you to nominate who your life benet will be paid to in the event of your death and for PWF members, provides a life benet to you, in the event of your nominees death.
It is very important to have a completed and updated benet nomination form that accurately sets out your current personal circumstances. That means if your circumstances change, fill out a new form immediately.
You Have A Dangerous Job
If you walk into a risky workplace every day, you can expect to be treated differently from someone with an office job.
The list of dangerous jobs is based on specialized tasks. A police officer who works a beat can typically access good rates, but a police officer on the bomb squad could get slapped with a higher premium, Hallett says.
The guidelines for military members are a little blurry. If youre in the military but not part of active-duty special operations forces, like Army Rangers or Navy SEALs, a broker can normally get you rates based on your health, Hallett explains. However, if youre deployed to a dangerous part of the world, you probably wont be approved for a policy until youre back on U.S. shores, unless you go with an insurer that specifically caters to the military.
These jobs can also cause issues:
Piloting, including student pilots, helicopter pilots and crop dusters.
Certain types of scuba diving, such as wreck diving and cave diving.
The good news? If you leave your hazardous job, you can ask your insurer to reevaluate your rates.
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