Permanent Life Insurance
Available through the workplace, this coverage offers lifetime protection, a tax-free death benefit, and the ability to build cash value.1 And since it’s portable, you can take coverage with you when you retire or leave the company.
Group Variable Universal Life (GVUL)
For complete plan details, talk to your company’s benefits administrator.
Group Universal Life (GUL)
For complete details, talk to your company’s benefits administrator.
Whole Life Insurance
For complete plan details, talk to your company’s benefits administrator.
A death in the family is not only emotionally devastating, it can also take a tremendous toll on the future financial security of a family. Suddenly, without the deceased’s income, paying the mortgage or providing for a child’s college education may become much more difficult.
Those who buy life insurance generally do so to help ensure their loved ones are taken care of financially. Life insurance is a promise by an insurance company to pay those who depend on you a sum of money upon your death. In return, you make periodic payments called premiums. Premiums can be based on factors such as age, gender, medical history and the dollar amount of the life insurance you purchase.
In the event of your passing, life insurance provides money directly to the individuals you select, your beneficiaries, who can use the money as they see fit, including:
- Replacing lost income
- Covering basic living expenses
- Paying household debts, estate taxes and funeral expenses
- Funding a child’s education
- Supplementing retirement savings
Life insurance comes in two main types – term and permanent – which may both be available through your workplace.
Term life insurance pays a specific lump sum to your loved ones, providing coverage for a specified period of time – usually from one to 20 years. If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy, but they do not build cash value. They may also give you the option to port. That is, you can take the coverage with you if you leave your company.
Generally, you should consider a term life insurance policy to:
- Get valuable coverage at an affordable price
- Help cover specific financial responsibilities like a mortgage or college expenses
- Supplement a permanent policy
Permanent life insurance policies do not expire. They are intended to protect your loved ones permanently, as long as you pay your premiums. Some permanent life insurance policies accumulate cash value. That means the value of the policy may grow each year, tax-deferred, until it matches the face value of the policy. The cash can generally be accessed via loans or withdrawals, and can be used for a variety of purposes. This type of policy is typically portable so coverage can continue if employment terminates.
Consider a permanent insurance policy if you want:
- Protection for life
- Payments that stay the same each year
- To put additional money into the policy on a tax-favored basis
- Cash value you can use while you are living
Getting life insurance through work can be an easy way to protect your family. If your employer offers a group plan, consider signing up for advantages that may include:
- Competitive group rates
- Guaranteed issue, meaning you can get a certain amount of coverage without answering health questions or taking a medical exam
- Convenient payroll deductions
- Easy access to enrollment and educational tools that can help you make decisions about the type and amount of insurance that’s right for you
- The confidence of knowing that your employer has reviewed and selected the plan
All you have to do is sign up, and sometimes enrollment is automatic.
Permanent life insurance is protection for your entire life, as long as sufficient premiums are paid. Properly structured and maintained permanent life insurance can build cash value which you can use as you see fit. 4
While you won’t be able to pinpoint the amount you’ll need to the penny, you can make a sound estimate. Your goal should be to develop a life insurance plan that, following your death, will allow your family to live comfortably without your economic contribution. Also consider the effect of inflation over time. The amount needed for retirement or college 20 years from now is likely to be significantly higher than today.
To estimate the amount of life insurance your family would need, first calculate everything you now provide for your family including:
- Benefits/health insurance
- 401(k) and retirement savings
- Personal services you perform for your family, such as child care, cooking, home maintenance, etc.
Then, subtract your personal expenses including:
- Annual spending on personal needs, such as food, clothing, entertainment, etc.
Life insurance through your workplace may be more affordable than you think. In fact, many people can get term life insurance coverage from a quality company for a surprisingly affordable price. 4
Premiums are typically based on factors such as:
- Age, sex, height and weight
- Health status, including whether or not you smoke
- Participation in high-risk occupations
Life insurance gets more expensive as you get older, and the type of coverage you choose will also affect your premium. Rates for term insurance are typically lower, while rates for permanent policies are typically higher.
Learn how life insurance protects those you care about in the event of your passing.
Learn about the two main types of life insurance and the advantages of each.
How much do you need? How much will it cost? Find out here.
Learn about the benefits of MetLife Life Insurance for your employees.
Group Variable Universal Life insurance (GVUL) is issued by Metropolitan Life Insurance Company (MLIC), New York, NY 10166, and distributed by MetLife Investors Distribution Company (MLIDC) (member FINRA). MLIC and MLIDC are MetLife companies.
Prospectuses for Group Variable Universal Life insurance and its underlying portfolios can be obtained by calling (800) 756-0124. You should carefully read and consider the information in the prospectuses regarding the contract’s features, risks, charges and expenses, as well as the investment objectives, risks, policies and other information regarding the underlying portfolios prior to making any purchase or investment decisions. Product availability and features may vary by state. All product guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.
Group Variable Universal Life insurance has limitations. There is no guarantee that any of the variable options in this product will meet its stated goals or objectives. Cash value allocated to the variable investment options is subject to market fluctuations so that, when withdrawn or surrendered, it may be worth more or less than the amount of premiums paid.
Like most insurance policies, MetLife’s GVUL and GUL policys contains exclusions, limitations and terms for keeping it in force. MetLife can provide you with costs and complete details.
Group Universal Life (GUL) is issued by Metropolitan Life Insurance Company, New York, NY 10166.
Texas Life Whole Life Insurance is available through your MetLife representative and is underwritten by Texas Life Insurance Company, 900 Washington, Waco, Texas. Texas Life is not affiliated with Metropolitan Life Insurance Company or its affiliates. Like most life insurance policies, Texas Life policies contain certain exclusions, limitations, exceptions, reductions of benefits, waiting periods and terms for keeping them in force. Texas Life complies with all state laws regarding marriages, domestic and civil union partnerships, and legally recognized familial relationships. Please contact MetLife for more information. 1 Guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.
2 In general, participants may withdraw cash value equal to premiums paid without tax consequences although less favorable rules may apply in the first 15 years. However, if the funding of the certificate exceeds certain limits, it will become a “modified endowment contract” (MEC) and become subject to “earnings first” taxation on withdrawals and loans. An additional 10% penalty for withdrawals and loans taken before age 59½ will also generally apply. We will notify you if a contribution would cause your certificate to become a MEC. Withdrawals and loans reduce the death benefit and cash value, thereby diminishing the ability of the cash value to serve as a source of funding for cost of insurance charges, which increase as you age. Withdrawals are subject to an administrative fee of 2% of the amount withdrawn, not to exceed $25.
3 Applies to SOLUTIONS Series 121 plan only.
4 Cash values can be accessed through loans and/or withdrawals, but these will reduce the death benefit and may have tax consequences. In addition, withdrawals from some policies may be subject to surrender charges and could have a permanent effect on the cash value and the death benefit.