Voluntary term life insurance
Help protect what matters most
Protecting your loved ones is important. And we don’t always know what the future will bring. That’s why being prepared for the future may need to be a top priority, and life insurance helps you put the people in your life first. Principal® makes it easy for you to purchase—or increase—voluntary term life insurance through your employer. This helps you provide additional protection to your family’s future, should the unthinkable happen.
What is voluntary term life insurance?
Even if your employer already offers life insurance as part of your benefits package, they may also give you the option to select additional voluntary coverage. Having voluntary term life insurance can provide even more financial protection for your loved ones if the unexpected occurs, helping put your mind at ease. It ensures that a death benefit is paid out to your chosen beneficiaries and offers them support during a difficult time.
Check out the video for a quick overview of what life insurance is and how it works.
Hear from one of our customers.
"The biggest thing is just being able to leave my kids in the best shape that we can if something happens to us."
Suzannah Kratz
Suzannah Kratz has been married for 24 years and has five children, with ages ranging from 13 to 23. She has been with her company for over 20 years, and appreciates the comprehensive benefits package her organization provides. When it came to enrolling in in voluntary term life insurance, she put her family’s future first.
The ins and outs of voluntary term life insurance.
Why should you consider it?
When determining your life insurance needs, first confirm whether your employer offers you coverage and how much. For some people, this might be enough. But if you have loved ones who are dependent on your income—or other major financial obligations, such as a mortgage—you may want to consider voluntary term life insurance.
How does it work?
Life insurance helps you protect the people you love from the unexpected. If something were to happen to you, your life insurance proceeds would go to the people you’ve designated as your beneficiaries. Those funds can help them manage financial obligations, such as:
- Funeral expenses
- Daily living expenses
- Childcare
- Paying off debts
- Mortgage/rent
- College funding
Benefits of buying it through your employer.
When you purchase voluntary term life insurance coverage at work, you get several advantages including:
- Group rates that are less expensive than if you purchase the insurance on your own.
- Guaranteed coverage when purchased at enrollment time.
- A cost that’s automatically deducted from your paycheck.
How much coverage do you need?
You can buy additional life insurance coverage in multiples of your eligible compensation, on top of what your company may already provide. Voluntary term life insurance can be purchased for yourself, your spouse/domestic partner, and your children.
To determine the amount of coverage you need, it’s important to consider your expenses and resources to help identify gaps in your overall protection. While everyone’s situation is different, one rule of thumb is seven to ten times your annual salary. Use this calculator to help break down how much life insurance you may need.
Help strengthen the security of your financial future.
Talk to your employer about voluntary term life insurance and the other voluntary benefits your organization provides that may ultimately help protect your financial outlook.