What Life Insurance Plan is Right for You?

Life insurance can be a morbid topic to discuss, but it’s an important conversation.

Big events, such as getting married or having a child, can prompt how much life insurance an employee buys to ensure loved ones are financially secure in the event of death.

As part of its benefits package, Duke automatically offers $10,000 in Basic Life Insurance at no cost to eligible employees, as well as a Survivor Benefit that provides one month’s pay for each complete year of full-time service, up to a maximum of six months, to the eligible employee’s spouse or estate after the employee’s death. Staff and faculty also have the option of purchasing additional life insurance through Duke.

“We recommend that all of our employees, no matter where they are in their career, have some level of additional life insurance,” said Saundra Daniels, voluntary benefits plan manager for Duke Benefits.

Keep these considerations in mind when planning for life insurance coverage:

Early career

The best time to buy life insurance is when an employee is in their 20s or 30s. These employees may need more insurance because they have more financial obligations, such as getting married, starting a family, or paying down debt. Younger individuals are statistically less likely to die, which makes premiums less expensive.

Supplemental Life Insurance is the most popular option because rates are generally competitive. Eligible employees can choose to cover themselves, their spouse and/or their children. The monthly cost of employee coverage adjusts January 1 of each year to reflect the employee’s age and annual salary.

Mid-career

Employees in their 40s or 50s may not need as much life insurance because they may be more financially stable. Children may be out of the house, and the biggest obligations may be college tuition or paying a mortgage.

At this stage, employees may want to consider Universal Life Insurance to replace their Supplemental Life Insurance. Universal Life premium rates are more expensive, but rates don’t increase as an employee ages. Another bonus is an employee can keep the same premium rate after retiring from Duke.

Employees can purchase Universal Life Insurance for themselves, their spouse, children or grandchildren. Employee coverage can be purchased in $5,000 increments, starting at $10,000 to a maximum of $100,000, depending on salary. A beneficiary receives the coverage amount when a policyholder dies.

Nearing retirement

Employees in their late 50s or 60s are encouraged to examine their life insurance policies. Near-retirees may be finishing paying a mortgage or may not have one, and children may be living on their own. If employees nearing retirement haven’t altered their policies, they may be able to drastically reduce their coverage amount and save money on the monthly premium.

Learn more about Duke's life insurance offerings on the Human Resources website.